A recent development in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs suggests a potential move toward resolution. According to court documents filed on a legal database, a mandatory settlement conference was held on March 29, 2024, in the U.S. for the Southern District of New York.
The conference, presided over by Magistrate Judge Sarah Netburn, has sparked speculation within the XRP community. The timing and a photograph shared online by an XRP community member depicting Ripple executives entering a federal courthouse in New York City on the same day, has led some to believe a surprise settlement discussion has occurred.
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However, according to former SEC official Marc Fagel, this conference was not a last-minute development but a pre-scheduled meeting mandated as part of the original lawsuit scheduling order.
Last year, Judge Analisa Torres directed both parties to select three potential dates for a settlement conference and dedicate at least one hour to such discussions if a resolution was deemed desirable.
The outcome of the March 29 conference remains undisclosed. Eleanor Terrett (@EleanorTerrett), a Fox Business Journalist revealed that a Ripple spokesperson declined to comment on the specifics of the meeting. This lack of information could indicate that no significant progress was made or that the details of the discussion are being kept confidential by both parties.
Adding to the uncertainty, Fagel has expressed his belief that there is a 0% likelihood of an immediate settlement. This perspective comes just days after the SEC filed its opening remedies brief, seeking a hefty penalty of approximately $2 billion against Ripple. The SEC claims this fine is necessary to deter future violations of federal securities laws.
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Read Also: XRP Lawsuit: SEC Focuses On $2.64 Billion Penalty from Ripple
Next Steps in the Lawsuit
Ripple has until April 22 to submit an opposition brief to the SEC’s demands. This document will likely outline arguments and evidence refuting the SEC’s claims and advocating against the proposed penalty.
The SEC will then have the opportunity to respond to Ripple’s opposition by May 6. Following these submissions, the court is expected to schedule a date for a final judgment.
The legal battle between the SEC and Ripple has been ongoing for over two years, with both sides fiercely defending their positions. The SEC alleges that Ripple’s XRP token constitutes unregistered security.
Although the court has determined that non-institutional XRP sales are not securities offerings, the SEC is fighting for a large penalty for institutional XRP sales. With potential evidence of price suppression from Ripple, things may not be looking good for the company.
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