Expert States Why Ripple Has Upper Hand in Potential Settlement Talks with SEC

Wall Street veteran Linda P. Jones, an author and seasoned financial analyst, has recently shared her insights on the ongoing SEC v. Ripple lawsuit. She believes that Ripple now holds significant leverage in determining the terms of a potential settlement with the U.S. Securities and Exchange Commission (SEC).

A Likely Settlement in SEC v. Ripple Lawsuit

Prominent XRP advocate and lawyer Fred Rispoli (freddyriz), acknowledging the recent developments, believes that discussions about a settlement between Ripple and the SEC are already underway. He shared his thoughts on X, stating that a settlement is the more likely option.

Rispoli noted, “My guess is settlement amounts are flying back and forth between the lawyers as I type.”

Amid mounting speculation within the XRP community regarding an impending settlement, optimism has grown now that the SEC has dropped charges against Ripple’s executives.

Rispoli’s comments got Linda Jones’s attention, who agreed with his assessment and took it further, asserting that Ripple holds the trump card in its negotiations with the SEC. Jones stated, “I agree, however, I think Ripple has a royal flush, meaning they aren’t negotiating and can literally name their terms.”

Jones emphasizes that Ripple is not just negotiating, it has the upper hand and can dictate its terms during the settlement process. Jones added, “Due to exposure of the Hinman emails, the SEC has zero bargaining power. Ripple can 100% name their terms in the settlement.”

She argues that the SEC is without bargaining power, thanks partly to the exposure of documents related to William Hinman’s 2018 speech, in which he categorized Ethereum (ETH) as a non-security asset.

The SEC’s Options

Ripple’s CEO Brad Garlinghouse recently highlighted Ripple’s multiple victories over the SEC, which have boosted its prospects in this lawsuit. Notably, Ripple compelled the SEC to release the Hinman documents despite initial resistance.

The SEC has only two options: either to pursue an appeal to the Second Circuit or a settlement agreement with Ripple. Although some experts have speculated that Ripple could pay a huge amount in settlement fees, the outcome remains uncertain, and it is a matter of speculation as to which path the SEC will choose.

However, the next phase of the lawsuit will focus on remedies, where the court will determine the financial penalties Ripple may face for its alleged violation of securities laws through the sale of XRP to institutional clients.

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