Ripple and SEC Rumored to Discuss Possible Settlement

Ripple and the SEC rumored to hold meeting on May 8, possibly about a settlement, according to unconfirmed sources.

Judge Torres standing in front of a supreme court holding a judge hammer. Behind the court building there is huge heads looking over with wide eyes.
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  • The XRP community attorney believed that a settlement would only occur after a victory for Ripple.
  • Ripple has considered settling with the SEC under certain circumstances.
  • A rumor has emerged on Twitter that a settlement between Ripple and the SEC is near.

The ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) continues without a verdict, despite expectations from lawyers in the XRP community that a decision would be reached by the end of April. Judge Torres is hearing the case in the Southern District of New York.

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Recently, a rumor has surfaced on Twitter that could suggest the end of the legal battle is in sight. However, as the rumor is unconfirmed and comes from an anonymous source, it should be taken cautiously.

Rumors of Ripple-SEC Settlement Spark Conversation 

According to Blockchain Daily’s Twitter account, Ripple and the SEC are rumored to hold a private meeting on May 8. Many speculate that the meeting could be about a potential settlement between the two parties. 

However, XRP community attorney John E. Deaton is skeptical of the rumor’s validity, believing that the SEC and Ripple could meet at any time without needing to schedule a specific meeting. Deaton also believes that a settlement would only occur after a ruling by Judge Torres and only if Ripple were to win a significant victory.

Ripple Could Sign Settlement – Deaton’s Perspective

If Ripple were to win against the SEC, Deaton thinks there may be circumstances where it would make sense for the company to enter into a settlement. This would depend on the ruling and whether the SEC appeals. Ripple could also be concerned about the regulatory safety of its partners, such as Bank of America. 

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Deaton thinks that Ripple CEO Brad Garlinghouse would be willing to sign a settlement check if the SEC classifies all future sales of XRP as non-securities and does not appeal, as this would mean an immediate return of liquidity to the US. However, a settlement would only be necessary if Judge Torres does not already provide for it in her ruling.

On the Flipside

  • There has been no official confirmation from either Ripple or the SEC regarding a meeting or settlement negotiations.
  • The XRP community may not favor settling with the SEC, as they believe it would be an admission of guilt.
  • The outcome of this case could have broader implications for the cryptocurrency industry as a whole, as it may influence how regulators approach the classification of digital assets in the future.

Why You Should Care

A potential settlement between Ripple and the SEC could have significant implications for the entire cryptocurrency industry. If the SEC were to classify all future sales of XRP as non-securities and not appeal, it would result in an immediate return of liquidity to the US, benefiting investors and stakeholders.

FAQs

What did the SEC say about Ripple?

The SEC has accused Ripple of conducting an unregistered securities offering, claiming that Ripple’s XRP token is a security and not a cryptocurrency. The SEC has filed a lawsuit against Ripple in federal court, alleging that the company and its executives have engaged in securities fraud.

What are the SEC’s issues with Ripple?

The SEC’s main issue with Ripple is that it believes Ripple conducted an unregistered securities offering. The SEC alleges that Ripple sold XRP to investors as an investment contract, making it a security subject to federal securities laws. The SEC also claims that Ripple engaged in securities fraud by making false and misleading statements about XRP to the public.

What is the SEC’s argument against Ripple?

The SEC’s argument against Ripple is that XRP is a security, not a cryptocurrency and that Ripple conducted an unregistered securities offering by selling XRP to investors. The SEC alleges that Ripple created XRP and controls its supply, making it an investment contract subject to federal securities laws. The SEC also claims that Ripple made false and misleading statements about XRP to investors, violating federal securities laws.

To learn more about Ripple’s monthly escrow return, read here: 

Ripple Returns 70% of Billion XRP Monthly Escrow

To read more about Alex Pertsev’s release from Dutch detention, click here: 

Crypto Mixers Under Fire: Pertsev Freed from Dutch Detention

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.