The ongoing legal battle between Ripple Labs Inc. and the US Securities and Exchange Commission (SEC) could end this week with a settlement between the two parties, as the SEC has scheduled a meeting behind closed doors for Thursday, July 18, 2024.
Ripple Vs. SEC Settlement This Week?
Brett Hill, an ambassador from the crypto exchange Bitrue, stoked the fires of speculation with a post on X. Hill’s tweet, which was accompanied by a screenshot of an SEC announcement, read: “BOOOOOOOM! private executive meeting at their headquarters in Washington for this Thursday (18 Jul-24)! Reliable sources have informed us that this meeting is connected to the Ripple vs SEC resolutions and the finalization of the court case! #XRP.”
Notably, the SEC’s official announcement details the logistics and nature of the meeting, but does not specifically mention the Ripple case. However, the subject matter listed for discussion includes “Institution and settlement of injunctive actions,” “Institution and settlement of administrative proceedings,” and “Resolution of litigation claims.” Such topics suggest that the meeting could indeed involve significant developments in the Ripple case.
The announcement indicates that the meeting will be held at the Commission’s headquarters in Washington, DC, but that remote participation is also possible. The non-public status of the meeting is based on the General Counsel’s certification that the discussion falls within several exemptions under 5 U.S.C. 552b(c) and 17 CFR 200.402(a). These exemptions relate to such matters as privacy (c)(6), law enforcement proceedings (c)(7), financial or commercial information (c)(4), and internal personnel rules and practices (c)(2).
This indicates the sensitivity of the discussions, which likely relate to ongoing enforcement actions, which in this context could very well include the Ripple litigation. The announcement also provides transparency regarding potential changes in the timeline, with updates promised on the SEC’s official website, indicating the fluid nature of such enforcement discussions.
The SEC is currently seeking a $102.6 million penalty from Ripple, a significant decrease from the nearly $2 billion originally sought. In its defense, Ripple has proposed a penalty cap of $10 million, drawing parallels to the resolution of the Terraform Labs case. However, the SEC rejected this proposal in its reply brief, arguing that such a nominal amount would not be consistent with the purpose of the civil penalty laws.
It is worth noting that some pro-XRP attorneys have assigned the case a rather low chance of a settlement. Fred Rispoli, the founder of Hodl Law, recently commented on this and stated that “pre-judgment settlement is unlikely, though some unresolved arguments could still be negotiated.”
At press time, XRP traded at $0.53.
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