Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The cryptocurrency space has been buzzing with discussions that center on the possibility of another lawsuit against Ripple. The discussion was sparked after House Democrats sent a scathing letter to the U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins.
Bill Morgan explains why SEC cannot reopen Ripple case
Notably, the legislators criticized Atkins for dropping major crypto cases, including the one against Ripple. According to the House Democrats, the 12 crypto cases were dropped because those affected allegedly made political contributions to someone of immense power.
The development has triggered some in the crypto space to speculate that the SEC could be ordered to reopen a legal battle with Ripple. However, lawyer and long-time XRP legal commentator Bill Morgan has dismissed the possibility of the SEC reopening the case.
In his explanation, the U.S. SEC is prohibited by law to go against all 12 companies on the same matters. This is because of the principle of "Res Judicata."
This legal doctrine stipulates that once a matter has been finally decided by a court of law, it cannot be litigated again between the same parties on the same issues.
Hence, Morgan stated, "Too bad the SEC can’t go against those companies again on the same matters. Res Judicata baby."
The implication is that no matter how much the House Democrats push or how angry critics wish for the SEC to reopen the case, it is legally closed. Given that U.S. courts have already ruled on these cases with the Ripple case ending in victory, there is no amount of outrage that can change the law.
Besides Ripple, other crypto entities listed by the House Financial Services Democrats include Kraken, Binance, Robinhood, Coinbase and Crypto.com. The legislators claimed that each of these donated a minimum of $1 million in political support.
Five-year legal battle that ended in historic XRP victory
It is worth mentioning that the U.S. Securities and Exchange Commission filed a lawsuit against Ripple over five years ago.
On Dec. 22, 2020, the lawsuit was made public with the regulatory authority claiming that XRP was a security. This legal battle commenced while Jay Clayton was SEC’s chair.
Despite regulatory pressures, Ripple held its grounds and with a team of legal experts argued their case before Judge Analisa Torres. Although Torres issued a historic judgment in June 2023, the lawsuit lingered till 2025.
The case was eventually concluded with Ripple now focused on core business growth.
Godfrey Benjamin
Dan Burgin
Denys Serhiichuk
Tomiwabold Olajide