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- The Ripple versus SEC case might be coming to an end soon with a likely settlement meeting.
- If confirmed, the SEC will not appeal any part of the ruling, a move that might fuel the XRP price.
The US Securities and Exchange Commission (SEC) has reportedly scheduled a discreet meeting for tomorrow as regards its ongoing case with Ripple Labs Inc. To this end, speculations abound about whether the SEC is considering a potential settlement to conclude the case.
SEC Meeting Agenda
According to details shared by pro-XRP investor, JackTheRippler, items to be discussed include settlement, resolution to litigation claims, and enforcement proceedings. The closed-door meeting will see big attendees including Commissioners, Counsel to the Commissioners, and secretaries at SEC’s headquarters in Washington.
🚨BREAKING: The SEC is having a secret meeting this Thursday, July 18, at their HQ in Washington!
💥SEC v. RIPPLE SETTLEMENT💥 #XRP pic.twitter.com/mO1Rh1U4ZV
— JackTheRippler ©️ (@RippleXrpie) July 12, 2024
Many market participants and stakeholders believe a final resolution is on the horizon. While Ripple expects a ruling in the coming months, pro-XRP lawyer Fred Rispoli recently predicted a July verdict. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. Therefore, the sales of XRP to institutional investors did not come off as unregistered securities.
However, the judgment partially favored Ripple as XRP trading on exchanges bagged a ruling describing it as non-security. Nonetheless, the Judge will have to decide the penalty Ripple must pay for breaching securities laws during institutional XRP sales. As noted in our earlier post, the SEC proposed a $2 billion, however, Ripple argued for a maximum fine of $10 million.
Commenting on the chances of settlement in the SEC vs Ripple case, Former SEC lawyer Marc Fagel remarked, “ I mean, they’ve had about 150 of these nearly weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but this is DEFINITELY the one!
“It’s not the one,” Fagel concluded, watering down possibilities of a potential settlement.
A settlement would prevent the SEC from appealing any ruling in the SEC vs Ripple case. Reflecting on Judge Analisa Torres’s judgment, Ripple Chief Legal Officer Stuart Alderoty said the Court’s ruling regarding XRP’s non-security status will remain unchanged. To support this position, he added that the SEC has told the Court it will not challenge the ruling.
It is worth noting that the SEC could appeal Judge Torres’ secondary sales of XRP as not a securities ruling based on Ripple’s lawsuit in California. As highlighted in our previous article, Judge Phyllis Hamilton has indicated that XRP could be considered a security when sold in the retail market.
XRP’s Price Action Amid Ongoing Case
XRP, the cryptocurrency associated with Ripple, has had its fair share of downward and upward trends, reacting to the SEC vs Ripple case. XRP rallied to a record high of $0.9327 on July 13, 2023, in reaction to Judge Torres’s rulings before falling below $0.60. The retreat became triggered by fear from investors of an SEC appeal against the Programmatic Sales ruling.
As of this writing, XRP has experienced a surge of 12% in the past 24 hours to trade at $0.6112. The trading volume also increased by 44% to over $3 billion, indicating renewed investor interest.
