Is the Ripple vs. SEC Lawsuit Coming to an End? Can a Settlement be Anticipated on April 16th?

Crypto enthusiast Ashley Prosper recently sparked a conversation on Twitter about the ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC). She highlighted an important opinion from the 2nd Circuit Court, stating that the SEC cannot force disgorgement without proving financial harm to investors. This principle could directly impact the SEC’s case against Ripple, as no clear financial harm has been proven.

Prosper also mentioned an unexpectedly scheduled settlement conference, which followed the SEC’s failure to outline investor losses in their remedies and judgment brief. The conference lasted longer than anticipated, and Ripple did not respond to the SEC’s brief before the meeting was called.

In her roundup, Prosper discussed several SEC actions that have affected the broader crypto landscape, including an investigation into Ethereum and a Wells notice sent to UniSwap. She also highlighted major developments within Ripple, such as their plans for a stablecoin and the unscheduled unlocking of escrow funds. Additionally, legislative progress on stablecoin regulation in both the House and Senate was noted.

Another crypto expert, Mr. Huber, expressed his disappointment in XRP’s 70% drop against other cryptocurrencies, despite what some might consider good news. Huber suggested that a settlement during a bull market could harm retail investors involved, emphasizing that “good news” is not always beneficial.

Ripple’s Chief Legal Officer Stuart Alderoty referred to a recent setback for the SEC in the Aron Govil case, where the 2nd Circuit rejected the SEC’s appeal. Alderoty believes this decision strengthens Ripple’s position, as without financial loss, the SEC’s claim for disgorgement lacks merit. Lawyer Bill Morgan echoed this sentiment, stating that the outcome of the Govil case could bode well for Ripple, especially if institutional investors are found not to have suffered financially.

Morgan emphasized that Ripple could use this to their advantage if the SEC fails to prove financial harm. However, he cautioned that the final outcome remains uncertain, pending further responses from Ripple to the SEC’s allegations.