Legal expert Bill Morgan has stated that the long-running SEC v. Ripple lawsuit cannot be reopened, pointing to the doctrine of res judicata as a definitive legal barrier.
His clarification, issued on January 17, 2026, comes amid renewed political scrutiny from House Democrats questioning why the U.S. Securities and Exchange Commission dropped several high-profile cryptocurrency cases, including the one against Ripple.
Morgan’s position is straightforward: once a court matter reaches final judgment and appeals are dismissed, the case is legally closed. Political pressure, he argues, does not change that reality.
too bad the SEC can’t go against those companies again on the same matters. Res Judicata baby. Live with it fools.
— bill morgan (@Belisarius2020) January 17, 2026
Why the Case Cannot Be Reopened
Morgan explained that res judicata prevents the same parties from re-litigating issues already decided by a court. The SEC v. Ripple dispute reached that point in August 2025, when both the SEC and Ripple Labs jointly dismissed their remaining appeals. With no appeals pending, the earlier court findings stand as final.
That procedural closure leaves no legal pathway to revive the case. According to Morgan, calls from lawmakers to revisit the decision may generate headlines, but they do not override settled judicial outcomes.
Final Terms of the Resolution
Under the final resolution, the SEC retained $50 million from a previously imposed penalty, while $75 million was returned to Ripple. Importantly, the settlement did not reopen factual findings or alter the court’s earlier conclusions. It simply finalized the financial terms and ended the litigation entirely.
Morgan emphasized that this distinction matters. The dismissal of appeals locked in the legal status of the case without further review, making it immune to later political intervention.
Political Pressure Meets Legal Finality
The renewed debate was sparked by concerns among House Democrats about the SEC’s broader enforcement pullback in crypto markets. While those concerns may lead to oversight hearings or policy discussions, Morgan noted that legal finality operates independently of political sentiment.
In his view, the courts, not Congress, determine when a case is over. Once that threshold is crossed, the matter is settled unless new, unrelated claims arise.
Market Implications in 2026
Since the lawsuit’s conclusion, XRP’s regulatory position has shifted materially. A draft of the U.S. Clarity Act includes a clause granting XRP a statutory exemption from securities classification, tied to its status as the primary asset of a U.S.-listed ETF as of January 1, 2026.
That clarity has coincided with rapid institutional adoption. Five XRP spot ETFs have launched since the legal cloud lifted, drawing more than $1 billion in net inflows during their first month of trading.
Morgan’s message to markets is unambiguous: regardless of political noise, SEC v. Ripple is closed law. Any future regulatory debate will have to start from that settled foundation.