In the XRP lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC), speculation regarding a potential settlement has been met with skepticism and outright dismissal by several legal authorities closely monitoring the case. This development follows a recent court ruling mandating Ripple to furnish comprehensive financial records related to its institutional sales of XRP for the years 2022 and 2023, a decision that has inadvertently stoked rumors of an impending settlement.
The recent court directive, issued by Judge Sarah Netburn, has introduced an eight-day delay in the legal proceedings, allowing Ripple an extension till February 20th to fulfill the financial disclosure requirements. This extension has fueled speculation among observers about a potential settlement.
However, with the deadline for rebuttals in the remedies stage set for April 24th, a conclusive end to this saga remains distant, casting a shadow of uncertainty over the next few months.
Why A Ripple-SEC Settlement Is ‘Nonsense’
Legal voices within the XRP community have been vocal in debunking the settlement rumors. Bill Morgan, a seasoned attorney, emphasized the confidential nature of settlement negotiations, noting, “People may not understand that settlement negotiations are confidential and subject to a form of privilege. Therefore, there is no hint of a settlement until there is suddenly a settlement.”
Echoing Morgan’s sentiments, Jesse Hynes, another legal expert, categorically dismissed the rumors as baseless. “Any rumors about a Ripple & SEC settlement are just nonsense if and until a settlement happens. This isn’t something that leaks and when settlement talks leak it’s often in some form of power play move for leverage. Don’t trust the nonsense,” Hynes stated.
Adding a touch of sarcasm to the discussion, Marc Fagel, a retired securities lawyer, ridiculed the notion of leaks in such high-stakes legal matters. “Yes, back in my SEC litigation days, we always made sure to call some random anonymous Twitter account before entering into settlement negotiations. Just seemed like common courtesy,” Fagel remarked, highlighting the improbability of sensitive information being leaked.
Morgan added that “in 26 years of settlement negotiations involving several hundred mediations either in my capacity as lawyer or acting as mediator there has not once been a leak or breach of the without prejudice privilege attaching to the mediation or settlement negotiations by any party or lawyer.”
Since the inception of the lawsuit in December 2020, Ripple has faced significant legal challenges, with the SEC scrutinizing its institutional sales of XRP. Despite the legal turbulence and the consequent bearish impact on XRP’s market performance, Ripple has secured notable victories in court.
These include the court’s determination that XRP is not a security and the dismissal of the SEC’s case against Ripple executives Brad Garlinghouse and Chris Larsen.
XRP Price Awaits Decision
As the case progresses into the remedies phase, with crucial deadlines looming, the crypto community remains on edge. The outcomes of this legal battle could have far-reaching implications for Ripple, its related XRP sales and the digital asset’s price.
At press time, XRP traded at $0.52097.
Featured image created with DALLE, chart from TradingView.com
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