- Possible settlement reason: Marc Fagel, former SEC official, asserts that only perceived “high risks” from claims against Ripple’s key figures could drive an SEC settlement.
- Status quo: With a trial scheduled for Q2 2024, the Ripple and SEC saga continues amidst heightened settlement speculations.
Deciphering the Ongoing Ripple Lawsuit
The landscape of the Ripple lawsuit has been fraught with speculation, particularly around a potential pre-trial settlement between the SEC and Ripple. Central to this chatter is the desire by some within the XRP community to prevent testimonies from SEC’s past officials during the trial, set to focus on Ripple’s high-profile executives, Garlinghouse and Larsen.
Marc Fagel’s Perspective on the Ripple Settlement
Marc Fagel, once an insider at the SEC with significant securities litigation expertise, recently shared invaluable insights concerning the prospects of a Ripple lawsuit settlement. During an interaction on platform X, he was quizzed about the probability of a pre-trial SEC-Ripple agreement.
And do you think, Marc, that the SEC is interested in a settlement before the trial starts in order to avoid Hinman and Clayton to testify?
— Balazs Feher (@BalazsFeher1) September 10, 2023
His response unveiled a pivotal consideration. Fagel believes that the SEC would only be prompted to settle before the trial if they perceive the accusations against Ripple’s Brad Garlinghouse and Chris Larsen to carry substantial risks. Refuting some widely-held beliefs, he stated,
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“I don’t think testimony from former SEC officials is a major factor.”
The Broader Settlement Landscape: Opinions and Developments
The undercurrents of anticipation have gained momentum, with some XRP aficionados theorizing that Ripple might disclose a settlement at its upcoming victory celebration, earmarked for September 29 in New York City. Yet, John Deaton, the founder of Crypto-Law.US, dampens these hopes, asserting that no such announcement is on the horizon.
Nevertheless, Deaton introduced another dimension, indicating that a pre-year-end settlement could be plausible if the presiding judge over the SEC v. Coinbase lawsuit dismisses the suit in favor of the cryptocurrency exchange. Although the SEC remains tight-lipped about any potential settlements, Ripple has voiced its willingness for an agreement, contingent upon the SEC’s recognition of XRP as a non-security.
Judiciary Oversight and Settlement Proceedings
Post a crucial ruling where Judge Analisa Torres affirmed that XRP isn’t a security, a shift in judicial supervision took place. Some aspects of the lawsuit, including potential settlements, were transitioned to Magistrate Sarah Netburn. In a notable move, Magistrate Netburn asked both Ripple and the SEC to earmark three tentative dates for a conceivable settlement discussion, considering the court’s hectic agenda. As of now, neither party has adhered to this directive, fanning flames of speculation around the SEC’s genuine interest in settling.
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