The legal dispute between Ripple and the Securities and Exchange Commission (SEC) appears to be nearing a resolution. Former Ripple Director Sean McBride recently shared his analysis, suggesting the case “SHOULD either be dismissed or settled” within the week.
McBride, responding to questions on the topic, highlighted the complexities of both scenarios and expressed a preference for settlement over dismissal.
According to McBride, a settlement offers more comprehensive terms than a simple dismissal. He suggested that Ripple, alongside its executives Brad Garlinghouse and Chris Larsen, is entitled to compensation after years of litigation.
Furthermore, he emphasized the likelihood of confidentiality agreements being part of any settlement, ensuring sensitive discussions between the parties remain private.
Within the week the case SHOULD either be dismissed or settled. I know there are nuances involved with each option, which is why I think it will be settled vs. dismissed. IMO, Ripple, Brad, and Chris are all owed compensation. There should also be some confidentiality with…
— Sean McBride (@seanmcbride16) January 23, 2025
Dismissal Could Open the Door for Countersuits
McBride addressed why the SEC might avoid dismissing the appeal outright. In response to a query on X (formerly Twitter), he explained that dismissal could allow Ripple to countersue the SEC for damages. Ripple could argue that the years-long legal battle has caused harm to its business and reputation.
On the other hand, a settlement would enable both parties to resolve these issues discreetly. McBride speculated that informal agreements or “backchannel” promises from a new U.S. administration could influence the settlement process. Such outcomes could provide Ripple with restitution while enabling the SEC to avoid the risk of further legal challenges or unfavorable precedents.
Ripple’s Growing Momentum in the Legal Battle
The Ripple vs. SEC case has been a defining moment for the cryptocurrency industry since its inception in December 2020. The SEC initially accused Ripple of conducting an unregistered securities offering, but Ripple has consistently pushed back, arguing that XRP is not a security under U.S. law.
As McBride pointed out, Ripple has shifted the narrative and placed increasing pressure on the SEC. The potential resolution of the case—whether through dismissal or settlement—could set an important precedent for how digital assets are regulated in the U.S. Moving forward, the outcome may shape the regulatory landscape for blockchain companies and other cryptocurrencies.
With significant implications for Ripple and the broader crypto industry, all eyes are on this case as it reaches a critical juncture. The resolution, anticipated this week, could mark a turning point in regulatory clarity for digital assets.
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