Ripple Lawsuit Speculations: Will the SEC Settle with Ripple?

Ongoing Ripple lawsuit sparks speculation about a potential pre-trial settlement.
Marc Fagel, a former SEC insider, offers insights on the settlement prospects.

The Ripple lawsuit has been a focal point of speculation, with particular attention given to the possibility of a pre-trial settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). At the heart of this discussion is the desire of some within the XRP community to avoid testimonies from former SEC officials during the trial, which primarily revolves around Ripple’s high-profile executives, Brad Garlinghouse and Chris Larsen.

Marc Fagel, a former insider at the SEC with extensive experience in securities litigation, recently offered valuable insights regarding the potential for a Ripple lawsuit settlement. During an interaction on a platform, he addressed the question of whether a pre-trial settlement between the SEC and Ripple was likely.

Fagel’s response shed light on a crucial consideration. He believes that the SEC would only be inclined to settle before the trial if they perceive significant risks associated with the allegations against Brad Garlinghouse and Chris Larsen. Contrary to some common beliefs, Fagel stated, “I DON’T THINK TESTIMONY FROM FORMER SEC OFFICIALS IS A MAJOR FACTOR.”

The Broader Settlement Landscape: Opinions and Developments

Speculation surrounding a potential Ripple settlement has gained momentum, with some XRP enthusiasts speculating that Ripple might announce a settlement during its upcoming event in New York City on September 29. However, John Deaton, the founder of Crypto-Law.US, dampened these hopes by stating that no such announcement is imminent.

Nevertheless, Deaton introduced another dimension to the discussion, suggesting that a pre-year-end settlement could become a possibility if the presiding judge overseeing the SEC v. Coinbase lawsuit dismisses the suit in favor of the cryptocurrency exchange. While the SEC has remained tight-lipped about potential settlements, Ripple has expressed its willingness to reach an agreement, contingent upon the SEC recognizing XRP as a non-security.

Following a significant ruling affirming that XRP is not a security, the judicial supervision of the lawsuit underwent a shift. Some aspects, including potential settlements, were transferred to Magistrate Sarah Netburn. In an noteworthy development, Magistrate Netburn requested both Ripple and the SEC to propose three tentative dates for a potential settlement discussion, taking into account the court’s busy schedule. As of now, neither party has complied with this directive, further fueling speculation about the SEC’s genuine interest in reaching a settlement.