- U.S. District Judge Analisa Torres is pushing Ripple and the U.S. Securities and Exchange Commission (SEC) to work out a possible settlement.
- The SEC stands to gain more with legal experts noting there is a slim chance that the SEC wins its case against Ripple.
The XRP lawsuit has taken an interesting but foreseen turn that could lead to the end of the legal case. U.S. District Judge Analisa Torres has directed Ripple and the U.S. Securities and Exchange Commission (SEC) to work out a possible settlement.
This is set for April 16, 2024, and both parties and their legal representatives are obligated to convene for an in-person meeting. The meeting must last at least one hour and explore the chance for a settlement.
Updating: Confirming reports that #Ripple and the SEC are currently engaged in settlement discussions after a meeting between #Ripple and Congress. #XRP pic.twitter.com/MBrrRVPWZz
— Brett Hill (@Brett_Crypto_X) October 8, 2023
This development comes just days after the SEC suffered a legal loss after the judge denied the SEC’s motion to file an interlocutory appeal. As CNF recently reported, the judge denied the motion based on several merits, affirming its strict stance. The appeal would have allowed the SEC to appeal the decision made by the judge at the end of the case if it deemed the ruling not to be favorable.
Following this minor victory and other recently notable wins for Ripple including Judge Torres’s ruling that Ripple’s sale of XRP directly to consumers did not constitute an illegally unregistered securities offering means the SEC faces certain loss in the final verdict. A number of legal experts agree that the SEC has a slim chance of ultimately winning the case.
In the recently held propel party hosted by Ripple in New York, many were speculating that Ripple would announce a settlement agreement with the SEC. Equally, some speculated that the fintech company would announce IPO plans. However, it was clear that the company was unlikely to make plans to go public while the securities case was still ongoing.
Ripple CEO Brad Garlinghouse has expressed interest in going public but has insisted this would only be considered after the case was concluded.
Does Ripple Want to Settle The XRP Case?
While it is clear why the SEC would be interested in settling the case outside the court and saving face, Ripple’s is not so clear but could be of great benefit.
For starters, Ripple has been clear that this case has cost the company millions of dollars. Earlier this year, Garlinghouse revealed that the case had cost the company more than $200 million in legal fees. In addition, it has severed the company’s relationship with its partners. The most prominent case was its partnership with MoneyGram which was terminated soon after the case was brought up. MoneyGram ended up working with Ripple rival Stellar Lumens. The case has further derailed XRP whose prices have been negatively affected by the case for the last three years.
Ripple has an interest in putting this case to bed and focusing on development. For Ripple, the question would be, is a win in the court better than a settlement behind closed doors?
