Ripple vs SEC Ongoing Legal Battle Fuels Speculation as Settlement Talks Emerge
In the ongoing battle between Ripple and the U.S. Securities and Exchange Commission (SEC) concerning the cryptocurrency XRP, there is rampant speculation about a potential resolution between the two giants. A U.S. district court has taken a step towards settlement talks by moving the Ripple lawsuit forward. This decision comes after Judge Phyllis Hamilton dismissed numerous class action claims but allowed the trial against Ripple CEO Brad Garlinghouse to proceed. The court’s deviation from a previous ruling by a New York court, which stated that XRP sales are not securities, has sparked discussion within the XRP community.
The dismissal of federal and state class action claims against Ripple by Judge Hamilton has kept an individual claim under California law alive. In a 2017 interview with Canada’s BNN Bloomberg, Brad Garlinghouse expressed his strong belief in XRP. However, the lawsuit alleges that he sold millions of XRP that same year.
Expert testimonies have been temporarily set aside in light of the latest developments. The case has been assigned to Magistrate Judge Robert Illman in order to facilitate a settlement between the two parties.
The judge’s decision has raised concerns about its potential impact on the broader Ripple vs. SEC case. Speculation suggests that the SEC may use this case as support for its appeal against a previous ruling that XRP is not a security. Nevertheless, legal experts believe that even if Ripple faces an unfavorable outcome, it may not significantly affect the larger lawsuit.
On the opposing side, the SEC is exerting its power by seeking a hefty $2 billion fine against Ripple for alleged violations of securities law. In response, Ripple’s Stuart Alderoty strongly criticized the SEC’s demands as unjust, pointing out inconsistencies and accusing the regulatory body of making misleading statements.
Former SEC lawyer Marc Fagel has stated that Ripple’s main concern is the SEC potentially using the California case to support its appeal against Judge Torres’ summary judgment on XRP in the Second Circuit. However, the court must first determine whether XRP sales were securities in order to address the issue of fraud.
Both pro-XRP advocates Bill Morgan and Marc Fagel have also noted that even if Ripple faces an adverse ruling, it may not have broader implications.
Following the court’s decision, the price of XRP dropped to $0.486 but stabilized around $0.489. It briefly surpassed $0.50 before falling back. Trading volume has increased by 9% in the past 24 hours, indicating continued interest from traders.
The crypto community is eagerly awaiting further developments in this captivating legal battle. While Ripple currently holds an advantage in the case, the fate of XRP remains uncertain.