In a significant development, U.S. District Judge Analisa Torres has directed Ripple and the U.S. Securities and Exchange Commission (SEC) to discuss a possible resolution to their ongoing legal dispute.
This directive accompanies Judge Torres’s recent ruling on the SEC’s request for an interlocutory appeal. The court has set the stage for settlement talks to take place before the final pretrial conference.
The Settlement Order
The final pretrial conference is currently scheduled for April 16, 2024, at 02:00 p.m. This development is notable because both parties and their legal representatives are obligated to convene for an in-person meeting. This meeting must last at least one hour and explore the potential for a settlement.
A legal expert recently shared his belief that the SEC has a slim chance of being successful in the lawsuit eventually. A settlement might be the best option. The court’s order aligns with a previous directive from Magistrate Sarah Netburn, who oversees the pretrial proceedings.
Shortly after the court’s summary judgment decision, Judge Netburn instructed the parties to jointly select three mutually agreeable dates for a settlement conference. However, the date selection will only occur if both parties believe a settlement conference would be productive.
Furthermore, Judge Netburn specified that these selected dates must be presented to the court at least six to eight weeks in advance. This order gives ample time for preparation before the pretrial conference scheduled for April 16, 2024.
Are Both Parties Willing to Settle?
It’s worth noting that this lawsuit has previously undergone two settlement conferences, both of which failed to yield a resolution. These prior meetings took place before Ripple’s victory in July.
The cross-border payments firm has expressed willingness to settle with the SEC if XRP’s regulatory status is clarified. The court has already ruled that XRP is not a security, but the SEC doesn’t seem willing to settle.
Although the SEC’s legal strategies have been heavily criticized, SEC Chair Gary Gensler has remained resolute in his fight with the crypto industry.
The SEC’s request for an immediate appeal to challenge Ripple’s victory was denied by the court. As a result, the SEC must await the resolution of the lawsuit before pursuing a full appeal in the Second Circuit.
With the court now mandating the parties to engage in settlement discussions, there is renewed hope that the upcoming conference could lead to a positive outcome, unlike the previous attempts.
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