There is a possibility that Ripple and the SEC could reach a settlement in the next 14 days. This comes after the SEC filed a notice of appeal on October 2, 2024, challenging Judge Analisa Torres’s ruling that stated XRP is not a security when sold on public exchanges.
The SEC’s notice of appeal suggests that they aim to overturn the July 2023 ruling. However, it doesn’t explicitly confirm this intention. Some speculate that Ripple may also consider a cross-appeal. Importantly, both parties now have a chance to negotiate a resolution before the formal appeal process begins.
Ripple and the SEC: Settlement Speculation
A user raised the question of whether Ripple might settle with the SEC, especially in light of their ongoing appeal. Historically, Ripple has maintained that they would not settle, but they are willing to end the lawsuit if it is determined that XRP is not a security.
In response, former SEC attorney Marc Fagel stated that a settlement seems unlikely. He explained that a settlement would not alter the lower court’s ruling regarding programmatic and non-cash sales, which is the core issue in the appeal.
Another user sought clarification, asking if Fagel believed the SEC aimed to delay Ripple’s growth and business model. Fagel replied that he does not think that’s the case. He pointed out that the SEC’s lawyers and staff acted on the belief that the law was broken and were simply doing their jobs.Â
While the commissioners who approved the case might have their own motivations, Fagel stressed that the initial case was built on the work of dedicated career staff. He noted that believing in a vast anti-Ripple conspiracy among SEC employees overlooks the more straightforward reality of how the agency operates.
Ripple’s Reaction
Ripple executives, including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, have expressed disappointment with the SEC’s decision to prolong the lawsuit. Alderoty referred to the SEC’s approach as “litigation warfare” against the cryptocurrency industry. Despite their commitment to fight, settling with the SEC could significantly benefit XRP, which has faced challenges due to the ongoing lawsuit.
