Bitcoin to Ride High on Ripple’s Legal Victory, Lawyer Forecasts

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• Judge Sarah Netburn calls for a settlement conference in the ongoing Ripple vs. SEC case, offering a potentially amicable resolution route.
• The suggestion comes on the heels of a significant ruling in Ripple’s favor, where Ripple Labs was found not to have violated federal securities law by selling its XRP token on public exchanges.

The legal tussle between Ripple and the Securities and Exchange Commission (SEC) witnessed a new dimension as Judge Sarah Netburn proposed a potential settlement conference. She suggested that both parties agree on three dates that would work for them, with an aim to prevent further court proceedings.

Listening to @JohnEDeaton1 talking with @AshBennington on the likelihood of an @SECGov appeal on the @ripple decision:

"The thing to know is that this judge’s decision, unless there's an interlocutory appeal, is going to be the law of the land for the next 2-3 years because…

— Eleanor Terrett (@EleanorTerrett) July 17, 2023

A New Route to Resolution

A settlement conference is an alternative dispute resolution strategy where parties involved in a lawsuit convene to identify a mutually acceptable solution, thereby averting the need for a trial. Judge Netburn’s call for such a conference in the Ripple vs. SEC case opens a window for a less contentious resolution, away from the courtroom’s heated arguments.

As I assume John fleshed out, that's an overstatement–it's the law from one specific district court, and isn't binding on any other court. Though insofar as it's the only judicial decision on crypto trading through exchanges, it will clearly be influential.

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— Marc Fagel (@Marc_Fagel) July 17, 2023

This development comes on the back of a significant court ruling in favor of Ripple Labs on July 13. The U.S. District Judge Analisa Torres found Ripple Labs not in violation of federal securities laws for selling its XRP token on public exchanges. This ruling had immediate ramifications, with XRP’s value skyrocketing by 80% by the end of the day. Following this favorable ruling, leading U.S. crypto exchanges such as Coinbase, Kraken, and Bitstamp resumed trading of XRP on their platforms.

Despite Ripple’s momentous win, the court decision did give the SEC something to hold onto. Judge Torres found that Ripple had breached federal securities law by selling XRP directly to individuals, a minor victory that the SEC may leverage in future engagements.

However, the Ripple vs. SEC saga is far from over. Gary Gensler, the SEC Chair, has indicated a possible appeal against the recent decision. During a luncheon hosted by the Press Club DC, Gensler revealed that the agency was still assessing the ruling’s ramifications. This legal roller coaster, coupled with Judge Netburn’s recent suggestion for a settlement conference, presents a captivating backdrop to the ripple effect of this case on the future of cryptocurrency regulations.