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- The XRP community is excited at the possibility of a Ripple-SEC settlement that would see the regulatory agency save face and XRP gain regulatory clarity.
- Presiding Judge Analisa Torres has ordered both parties to hold a physical settlement discussion before April 16, 2024.
The XRP community is gearing up for what could be the final phase of the three-year-long SEC vs. Ripple case. As CNF reported earlier this week, the presiding judge on the case, Judge Analia Torres, is pushing for a settlement between the two parties. The judge has directed that both parties meet in person, for at least an hour to engage in a settlement discussion. Furthermore, the said meeting must be held before the pretrial conference slated for April 16, 2024.
For the last couple of weeks, there have been rumors about a possible settlement between the two parties, something that the community has seemingly been excited about. It is clear that the three-year-long case has taken a toll on the community, Ripple, and XRP prices. Brad Garlinghouse, the CEO of Ripple has in the past made remarks on how the case has hindered development, adoption, and partnerships. Furthermore, he has revealed that the case has cost the company hundreds of dollars in legal fees.
Since the beginning, Ripple has been confident of an outright win against the SEC. This has been supported by the minor victories that the company has enjoyed over the three years. More recently, it celebrated a major victory with the ruling that Ripple’s sale of XRP directly to consumers did not constitute an illegally unregistered securities offering. Just weeks after this, the SEC was dealt another blow after Judge Torres denied its motion to file an interlocutory appeal. The appeal would allow the SEC to appeal the judge’s ruling that gave Ripple a partial victory.
Win-win for Ripple and the SEC?
All signs, and as noted by legal experts point to the SEC losing this case. A case that will set precedence over the entire cryptocurrency industry, the SEC will be keen to avoid an outright loss according to many. Because of this, commentators argue that the SEC will be keen to settle, allowing them to pocket some money and save face. However, it is important to note that thus far the SEC has not shown any intent to settle this case outside of court.
Ripple on the other hand will tempted to go all the way and get a court ruling which means only Bitcoin and XRP would have undisputable regulatory clarity handed out in court. But there is no guarantee that the company will win this case and while it goes on, possibly taking another couple of years before a final verdict, Ripple and its issued native token continue to count losses. For this reason alone, Ripple might be interested in settling outside court. Brad Garlinhouse back in 2021 was open to a settlement but has in recent months made remarks that suggested this is not a viable avenue.
