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- There are rumors circulating that Ripple and SEC will have a secret meeting next week.
- With the rumors tilting toward a possible settlement, Attorney John Deaton believes such a move is unlikely.
The more than 2-year legal feud between the United States Securities and Exchange Commission (SEC) and blockchain payments firm, Ripple Labs Inc is likely coming to an end very soon as there are indications of a scheduled meeting between the duo next week. According to unconfirmed sources, the meeting will take place secretly on May 8.
🚨JUST IN: REPORTEDLY RIPPLE AND SEC TO HOLD UNDISCLOSED MEETING ON MAY 8TH – UNCONFIRMED SOURCE pic.twitter.com/LNrUVCloQ1
— Blockchain Daily (@blckchaindaily) May 1, 2023
The current rumors have it that the plan is to enter into a settlement negotiation that can potentially bring an end to the current lawsuit the commission filed back in December 2020. While the update has sparked a lot of dissenting views, the prospects of an impending settlement have further helped re-energize the XRP community.
Prior to this recent update, the broader crypto ecosystem has been anticipating the summary judgment from Judge Torres who has been presiding over the case all these while. Based on the precedent and the facts from the case thus far, analysts have been speculating that the chances the blockchain payments firm will come out triumphant in the legal battle are high.
In fact, there is recent information that showed the SEC has a relatively poor success rate in cases that Judge Torres has preceded over. With the much-anticipated summary judgment delayed yet again, the rumors of the meeting have further conditioned the minds of many keen observers that a settlement might truly be underway.
Can a Settlement Between Ripple and SEC Truly be Underway?
While many are still speculating that the settlement might turn out to be true, a crypto-friendly attorney and the legal counsel representing over 75,000 XRP holders, John Deaton, maintained that the rumors cannot be true under any account.
Given the broad conditions upon which a settlement can occur, John Deaton noted that there will have to be at least a summary judgment which will be in most parts favorable to Ripple and not the SEC. The legal expert noted that this possibility will encourage the regulator to fight for a settlement in order to save face.
Deaton also pointed out that the SEC may appeal the decision of Judge Torres if the initial verdict is not in its favor. The pro-Ripple lawyer said he is convinced that the terms of the settlement will be different depending on each of the situations involved.
Does Bank of America, a Ripple partner feel comfortable with the decision or wait to see if Judge Torres gets overturned if the SEC appeals her ruling.
Remember, the SEC can file a notice of appeal and withdraw it later.
— John E Deaton (@JohnEDeaton1) May 2, 2023
One of the major contentions in the Ripple vs SEC case is in the designation of the status of the XRP coin on whether it is a security or not. Any potential settlement will also have to include a favorable agreement on how the XRP coin will be treated in the near future.
This condition bordering on XRP’s classification will also reasonably stand as a precedent upon which many other related cases will be hinged in the near future.
