DLC SEC Ripple Settlement Contingent on Singular Reason, Says Legal Veteran Marc Fagel -

SEC Ripple Settlement Contingent on Singular Reason, Says Legal Veteran Marc Fagel

The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has spurred speculation about the possibility of a settlement before the scheduled trial in Q2 2024. Some XRP supporters have suggested that the SEC’s motivation for settling would be to prevent its former officials from testifying during the trial.

In a recent discussion on the subject, Marc Fagel, a former SEC official and securities litigation expert, offered his insights into the matter. Fagel addressed whether the SEC might reach a settlement with Ripple before the trial begins.

Fagel highlighted a key factor that could drive the SEC to agree to a settlement: if the claims against Brad Garlinghouse and Chris Larsen, Ripple’s executives, are deemed “high risks.” He emphasized that testimony from former SEC officials would not be a major determining factor.

While speculation about a potential settlement between Ripple and the SEC has intensified, some XRP enthusiasts have even suggested that Ripple could announce a settlement at its upcoming victory party on September 29 in New York City. However, Crypto-Law.US founder John Deaton has clarified that a settlement could only occur before the end of the year if the judge overseeing the SEC v. Coinbase lawsuit grants the crypto exchange’s motion to dismiss the case.

Ripple has expressed its openness to a settlement but has set a condition: the SEC must classify XRP as a non-security. Judge Analisa Torres previously ruled that XRP itself is not a security, and Magistrate Sarah Netburn is overseeing selected portions of the case, including the possibility of a settlement conference.

Magistrate Netburn has ordered both parties to propose three dates for a potential settlement conference, with a requirement to submit them at least six to eight weeks in advance due to the court’s busy schedule. As of now, the parties have not complied with this directive, leading to increased speculation that neither side may be inclined to pursue a settlement.

The outcome of the SEC’s case against Ripple continues to be closely watched by the crypto community, as it holds implications for the classification of cryptocurrencies and their regulatory framework in the United States.

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