HomeNewsExpert Opinion: SEC Unlikely to Settle Ripple Lawsuit, XRP Price Wavers

Expert Opinion: SEC Unlikely to Settle Ripple Lawsuit, XRP Price Wavers

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  • Attorney Bill Morgan anticipates that the SEC will likely appeal the ruling favorable to XRP, challenging Kraken’s strategy.
  • Kraken is using Judge Torres’ ruling, determining XRP not to be an investment contract, in its defense against the SEC.

The legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has entered an even more complex phase with the recent defensive strategy adopted by the Kraken exchange.

This maneuver adds a complicated element to the already tense negotiation process between Ripple and the SEC, raising doubts about the possibility of a settlement in the short term.

Bill Morgan, an XRP lawyer, notes that Kraken’s defense could have an effect on the direction of this legal dispute, leaving both supporters and detractors in suspense over the final outcome.

Impact of Kraken’s Strategy on the Case

The litigation between the SEC and Ripple has emerged as a crucial element directly impacting the value of XRP. In the face of the anticipation of an immediate settlement, counsel Bill Morgan believes there is a high probability that the SEC will choose to challenge Judge Torres’ decision, motivated by the defensive tactics implemented by Kraken.

The exchange has invoked the judge’s verdict that XRP “does not qualify as an investment contract” in its counter-argument to the SEC, introducing additional complexity to the dispute.

In its defense, Kraken argues the non-existence of a direct link between the issuer and the acquirer, arguing that this removes any expectation of benefit by users derived from Ripple shares, aligning itself with the reasoning established by Judge Torres in the SEC v. Ripple legal confrontation.

This reasoning extends to 11 other token issuers that the SEC considers securities. Morgan believes this could prompt the SEC to appeal Torres’ decision, affecting XRP’s classification as a “non-security.”

Ripple Litigation

The discovery process in the case has concluded, marking the end of a stage where both sides shared relevant information. Key moments to follow include:

  • march 13: SEC due to file a report related to sanctions.
  • april 12: Deadline for motions opposing sanctions proposals.
  • april 29: Final deadline for determining sanctions for Ripple’s institutional sales.

Although Judge Analisa Torres’ final ruling could be delayed until July or August, a settlement could close the case sooner. This possibility has been mentioned by other industry experts, given the significant influence of the lawsuit on both Ripple and the crypto market in general.

The SEC initially charged Ripple with selling unregistered securities in the form of XRP tokens, seeking a $770 million fine. However, a July 2023 ruling determined that only sales to certain institutional investors were illegal, partially favoring Ripple.

Will there be a settlement or will the dispute continue?

Although the details of a potential settlement negotiation remain under reserve, the looming deadlines and potential sanctions mark a turning point. A settlement would provide a definitive resolution, avoiding additional legal costs and uncertainty.

The cryptocurrency community awaits the upcoming developments with anticipation, yearning for a definitive resolution of this high-profile legal showdown, with widespread consequences for the entire industry.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628