Court Decision Sparks Speculation in XRP Lawsuit Will Ripple Reach a Settlement

Key Points
A US court is urging Ripple and the SEC to consider settlement talks, despite some claims being dismissed.
The court’s decision may not have a significant impact on the overall lawsuit, regardless of the outcome of specific claims.
Both parties are gearing up for a potentially costly and influential legal showdown.
In the ongoing saga of Ripple versus the SEC regarding XRP, there is speculation surrounding a potential resolution between these two heavyweights. Recently, a US district court has opted to guide the Ripple lawsuit towards settlement discussions, igniting fresh debates within the XRP community. This development follows Judge Phyllis Hamilton’s dismissal of multiple class action claims while allowing the trial against Ripple CEO Brad Garlinghouse to proceed.
Here is what you should know about this latest development.
Quiet Negotiations
Judge Hamilton has dismissed the federal and state class action claims against Ripple but has kept an individual claim under California law in play. In a 2017 interview with Canada’s BNN Bloomberg, Ripple CEO Brad Garlinghouse expressed his strong support for XRP. However, the lawsuit alleges that he sold millions of XRP during the same year.
As part of the recent move, expert testimonies have been put on hold for now. The case has been handed over to Magistrate Judge Robert Illman to assist both sides in reaching a settlement.
Implications for Ripple vs. SEC Lawsuit
Nevertheless, questions have arisen regarding the impact of the judge’s decision on the broader Ripple vs. SEC case. Speculation suggests that the SEC could potentially utilize this case to bolster its appeal against a previous ruling that XRP is not a security. However, legal experts argue that even in the event of an unfavorable outcome for Ripple, it may not have a substantial effect on the overall lawsuit.
On the opposing side, the SEC is flexing its muscles by seeking a hefty $2 billion fine against Ripple for alleged violations of securities laws. In response, Ripple’s Stuart Alderoty did not mince words, criticizing the SEC’s demands as unjust, pointing out inconsistencies, and accusing the regulatory body of issuing misleading statements.
Insights from Former SEC Lawyer
Former SEC lawyer Marc Fagel highlighted that Ripple’s primary concern lies in the potential use of the California case by the SEC to support its appeal against Judge Torres’ summary judgment on XRP in the Second Circuit. However, the court must first establish whether XRP sales were deemed securities to address the fraud issue.
Both pro-XRP advocates Bill Morgan and Marc Fagel also indicated that the lawsuit may not have broader implications even if Ripple faces an adverse ruling.
XRP Price Movement
Following the court’s decision, XRP’s price dipped to $0.486 before stabilizing around $0.489. It briefly surpassed $0.50 but then retreated. Trading volume saw a 9% increase in the past 24 hours, indicating sustained interest from traders.
The Saga Continues
The cryptocurrency community is eagerly awaiting further developments in this gripping legal battle. While Ripple has had the upper hand in the case thus far, the fate of XRP remains uncertain.
What are your thoughts? Will Ripple reach a settlement with the SEC, or are we in for a fierce legal showdown?