A renowned legal practitioner, Fred Rispoli, has weighed in on the recent Ripple vs. SEC case development. The lawyer believes the US Securities and Exchange Commission (SEC) will likely settle with Ripple. Such a scenario will mark the end of the multi-year-long legal battle.
Settlement Could Become a More Likely Option
Recently, the SEC has dropped its charges against Ripple’s top executives, Brad Garlinghouse and Chris Larsen. The move sparked several reactions within the crypto space, with many speculations about how the SEC-Ripple lawsuit will end.
Subsequently, some legal professionals took to Twitter (rebranded as X), dropping predictions of the possible turn of the case. According to pro-XRP Attorney Rispoli, the US securities regulator may have to settle with Ripple as a more likely option.
In his October 19 post on X, Rispoli indicated that the counsels of both parties had opened a discussion about a possible settlement amount.
Considering that, while I understand exactly how BG and CL felt while being sued and would want to end it ASAP, it was crystal clear they would win the lawsuit and expose the SEC, so why agree to voluntarily dismiss (even with prejudice) without more? Makes me lean towards…3/4
— Fred Rispoli (@freddyriz) October 19, 2023
In his tweet threads, the attorney considered some implications of the SEC’s sudden decision to drop its charges against Ripple executives. Recall that the securities regulator alleged that the execs aided and abetted illicit XRP transactions during the token’s ICO.
According to Rispoli, two scenarios apply to the SEC’s decision. Firstly, the regulator could have realized its charges against Ripple executives were “horseshit.” Secondly, it now understands that the court doesn’t see credibility in its claims.
Rispoli speculated that if the first matched the SEC’s action, there’s a possibility of prolonged briefing in the case during the remedies stage.
The lawyer mentioned that the securities regulator could still appeal the July 13 court’s decision after the remedies phase. But if the second scenario is applicable, Rispoli believed that a settlement between the SEC and Ripple would be a more viable option.
Lot of implications here and quite a few ways this litigation can still go. All bad for the SEC and only a few ‘somewhat’ bad for @Ripple.
The legal setting allows the SEC to appeal fully to the Second Circuit once the remedies stage is complete. However, it negatively impacts the regulator if it doesn’t win.
A loss for the SEC in the Second Circuit would set a precedent for other crypto projects, defeating the agency’s enforcement motives in the crypto industry.
Would Settlement Be Feasible?
From the start of the Ripple vs SEC lawsuit, many believed a possible settlement term could wrap up the case. Though Ripple indicated its readiness for a settlement, the SEC has shown no signs of embracing such an option.
In the early stage of the case, both parties held two settlement conferences that yielded no positive impact. However, the two parties have not moved further for another settlement conference.
Recall that the court ordered the two parties to choose three agreeable dates for a possible settlement conference if necessary. However, there still needs to be more information regarding such a move.
But with Ripple already bagging three wins against the SEC, the regulator could opt for a settlement with the blockchain
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