SEC vs. Ripple XRP Settlement Could Come Within Days
A legal expert has analyzed that the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple could soon be over, if certain conditions are met. However, a major hurdle is the court order settlement that could complicate the process.
Ripple vs. SEC Case Could Be Nearing Its End
Renowned legal expert Jeremy Hogan weighed in on the SEC’s lawsuit against Ripple over XRP, suggesting that a private settlement could be the quickest way to end the case. Hogan's comments came after Fox Business journalist Eleanor Terrett revealed that her sources said the lawsuit was "in the process of being closed and could be closed soon."
Hogan laid out the conditions necessary for the lawsuit to be closed in the short term:
The only way the lawsuit could be closed soon is if Ripple and the SEC reach a private settlement (which is separate from the court order), avoid appeals, and never bring the terms of the settlement back to court for approval.
Challenges from a court order
However, Hogan also warned of a major challenge to Ripple's court order. He explained that the SEC would need to agree not to enforce the court order, which he doubted the SEC would be able to do. However, Hogan also suggested that it is possible that the SEC would agree to another solution, such as providing Ripple with a legal path to register its sales of XRP to institutional investors.
This would mean that Ripple could get what it wants wants, while the SEC is not considered to have completely overturned the court order. That could happen, Hogan stressed.
The delay could be Ripple's fault
In addition, another attorney, James Murphy, recently suggested that the delay could be Ripple's fault, as they seek to negotiate more favorable terms. Murphy speculated that Ripple may be trying to remove some of the restrictions in Judge Analisa Torres' ruling in order to reach the most favorable settlement.
Murphy also suggested that the SEC may be willing to accept a $125 million fine, but Ripple is looking to avoid terms that could be seen as an admission of wrongdoing.
The settlement could set a new precedent for the industry
If Ripple and the SEC reach a settlement, it would bring to an end a years-long legal battle, and shape the future of regulation for the cryptocurrency industry. Hogan stressed that a settlement remains the most likely way to end the case in the short term.
That’s the only way I see the case ending anytime in the next few days or weeks, Hogan said, asserting that his predictions are consistent with Terrett’s report that a settlement is imminent.
However, there is no precedent for this scenario, and it is unclear whether negotiations will end quickly or drag on. Still, the outcome of the case could set an important precedent for future SEC enforcement actions in the crypto space.