In the Ripple versus SEC legal battle, settlement debate and recent update in the ecosystem stirs optimism in the community By Varinder Singh 19 hours ago Updated 15 hours ago
Story Highlights
- Ripple Vs SEC settlement date in the court calendar stirred further debate of potential settlement.
- SEC’s recent closed-door meeting, XRP unlocks, and reasons by expert Ashley Prosper raised questions among XRP army.
- Coinbase seeks clarity on whether an “investment contract” requires something contractual.
The age-long legal battle between blockchain payments firm Ripple Labs Inc. and the United States Securities and Exchange Commission (SEC) had a settlement conference in March end, raising speculation of final settlement talks in the coming days as per an earlier order by Judge Torres.
In addition, Ripple Labs will also file its response to the SEC’s request for a final judgment and nearly $2 billion in penalties on April 22. This month will be crucial for the XRP lawsuit and the army.
Ripple and SEC to Meet Next Week?
The SDNY Court’s proceeding calendar for the week of April 15 displays a “Final Pretrial Conference” between the U.S. SEC and Ripple Labs on April 16. However, the courtroom detail shows as “TBD.” This could either mean the March 29 settlement conference was the final meeting between parties or final settlement talks are still off the table.
While the matters were dismissed after the SEC dropped charges against CEO Brad Garlinghouse and executive chairman Chris Larsen, experts believe Ripple and SEC could settle the XRP institutional sales with lower penalties.
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Meanwhile, the SEC seeks a final judgment against Ripple. This includes permanent injunctions, disgorgement and prejudgment interest, and civil penalties of nearly $2 billion. In response, Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty lashed out at the SEC and said to expose the regulator in Ripple’s filing on April 22.
However, the SEC’s recent closed-door meeting on April 11, Ripple’s delayed XRP unlocks from escrow, and reasons by expert Ashley Prosper on the Ripple vs SEC case probably over, stirred further debate of potential settlement.
Clarity on XRP Secondary Sales and “Investment Contract”
Coinbase won an argument in a lawsuit that secondary market transactions of cryptocurrency are not securities, as per an order by the US Court of Appeals for the Second Circuit. This provided further support for Judge Torres on secondary market sales of XRP, ruling that “Programmatic Buyer stood in the same shoes as a secondary market purchaser.”
Coinbase has filed for interlocutory appeal in the SEC case in the same Second Circuit court seeking clarity on whether an “investment contract” requires something contractual. In addition, the Second Circuit Court of Appeals rejected the SEC’s appeal in the Aron Govil case, sparking hope for Ripple’s win against SEC.
“We’re asking to take this up on appeal earlier than normal because it’s critical to our industry. The SEC’s action against us and other digital asset companies goes way beyond the legal authority granted by Congress and puts an unjust cloud over US digital asset innovation, said Coinbase CLO Paul Grewal.
Pro-XRP lawyer Bill Morgan said if Coinbase loses appeal, it could potentially bolster the SEC’s position in the XRP programmatic sales case.