Pro-XRP Lawyer Says Settlement is Now ‘More Likely Option’ in Ripple Vs SEC Case
Prominent legal expert Fred Rispoli speculates that the SEC could likely settle with Ripple given the latest development in the ongoing legal tussle.
Following the SEC’s move to drop charges against Ripple execs – Brad Garlinghouse and Chris Larsen – top legal experts have taken to the X platform to predict the potential outcome of the lawsuit.
Settlement is the More Likely Option
Pro-XRP lawyer Fred Rispoli speculated that the SEC settling with Ripple could be the more likely option for the regulator. Attorney Rispoli gave the prediction in a recent X post, emphasizing that counsel to the parties are discussing the amount to be paid for a settlement.
…a prediction that a final settlement with @Ripple is the more likely option. While the letter states the parties are conferring on a remedies briefing schedule, my guess is settlement amounts are flying back and forth between the lawyers as I type. 4/4
— Fred Rispoli (@freddyriz) October 19, 2023
Notably, the attorney took into consideration the motive behind the SEC’s decision to drop the aiding and abetting charges against Ripple execs. Rispoli highlighted two scenarios that could have prompted the decision.
The pro-XRP attorney noted that the SEC could have realized that its case against Ripple execs was “horses**t,” or the commission now knows that the court no longer finds it credible.
If the former was the reason behind the dismissal, Attorney Rispoli speculated that there could be a bitter and lengthy briefing during the remedies phase. He added that the SEC could also appeal the July 13 summary judgment after the remedies stage.
However, Rispoli said if the SEC dismissed the case against Ripple execs because it found out that it had lost credibility with the court, then a settlement could be on the horizon.
Efforts Regarding a Settlement
Since the beginning of the lawsuit, there have been talks about a possible settlement in the case. While Ripple has been open to a settlement, the SEC has not signaled any plans to reach an agreement with the company.
The two previous settlement conferences held in the early stages of the lawsuit did not yield any positive results. Notably, Ripple and the SEC could engage in another settlement conference.
As reported, the court ordered the parties to select three dates for a potential settlement conference if they believed it to be appropriate. The parties have not provided any updates regarding the order.
With the SEC recording three defeats since July, the regulator could consider a settlement.
Possible Appeal After Remedies?
Meanwhile, the SEC has the option of filing a full appeal to the Second Circuit after the remedies phase.
However, if the commission loses in the Second Circuit, it runs the risk of setting a precedent that other crypto projects could follow. This could endanger the SEC’s enforcement agenda in the cryptocurrency sector.