Ripple and SEC Have Likely Reached A Settlement, Says Expert

Recent events have sparked speculation of a potential settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). Although there is no confirmation, Ashley Prosper (@AshleyPROSPER1), a prominent figure within the XRP community, has analyzed several aspects that might suggest a settlement.

Firstly, he highlights the recent Second Circuit ruling in the SEC v. Govil case. This ruling denied the SEC’s request to reverse a decision on disgorgement, potentially impacting the SEC’s case against Ripple. Secondly, Prosper criticizes the SEC’s remedies-related brief for failing to identify harmed investors, a key element in their argument.

Another noteworthy development is the SEC’s apparent shift in focus. The regulator recently launched investigations into Ethereum and Uniswap, potentially classifying Ethereum as a security and issuing a Wells Notice to Uniswap, a decentralized exchange (DEX). This shift could be strategic, allowing the SEC to dedicate resources elsewhere while the Ripple lawsuit progresses through the courts.

Ashley Prosper highlighted other potential factors like a court-ordered settlement conference which reportedly took place on March 29, exceeding the expected duration. While details remain undisclosed, the extended session could be interpreted as a positive sign for settlement negotiations.

Additionally, Ripple’s recent foray into the stablecoin market and the sudden release of 500 million XRP from escrow have fueled speculation of a settlement between both parties.

Is This the End of the Infamous XRP Lawsuit?

The lawsuit is ongoing, with Ripple expected to file a response to the SEC’s brief by April 22. Furthermore, Prosper has since clarified inaccuracies in his initial observations. There is no upcoming settlement conference scheduled for April 16, and the 500 million XRP release was a pre-scheduled disbursement to fulfill monthly quotas.

However, other notable factors point to a likely settlement, with the Govil lawsuit ruling standing out as a prominent one. The recent closed-door SEC meeting on April 11, conducted under the Sunshine Act, has also been cited as a potential indicator of a settlement. However, the true nature of the discussions remains unknown.

With rapidly rising speculation of a settlement, the official outcome remains to be seen. The upcoming response from Ripple and any further announcements from the SEC will be crucial in understanding the case’s direction. However, a prominent community figure believes Ripple only has a 40% chance of gaining a favorable settlement, and some believe the SEC might not settle.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.