Ripple Vs. SEC Court Update: Undisclosed Meeting Next Week?

Another month has passed with no resolution in the legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC). Despite the fact that some XRP lawyers predicted a verdict by the end of April, Judge Torres of the District Court for the Southern District of New York has yet to issue a ruling.

However, a rumor spread on Twitter a few hours ago, implying that a decision in the legal battle between Ripple and the SEC is imminent. However, because this is an unconfirmed rumor from an anonymous source, it should be treated with caution.

According to the Twitter account Blockchain Daily, Ripple and the SEC will attend an unknown meeting on May 8. Twitter users are already speculating that it could be about a settlement. XRP community attorney John E. Deaton, on the other hand, would “bet” that the report is false. He claims that lawyers from the SEC and Ripple can meet whenever they want. “I don’t think they’d pick a date a week from now and then leak it,” Deaton says, adding that a settlement won’t happen that way.

First, Deaton believes that a settlement would be reached only after Judge Torres rules, and only if Ripple wins a big victory, allowing Gensler to save face and score a political victory through a settlement.

Second, according to Deaton, the SEC would not schedule a meeting due to the allegation of market manipulation and the potential of a leak. He expects Ripple and the SEC will “just meet,” which leads him to the following assumption:

According to John Deaton, it may make sense for Ripple to enter into a settlement following a probable victory over the SEC under certain situations. This would be “not like two years ago,” but it would depend on the decision and whether or not the SEC appealed.

Ripple may also be concerned about its partners’ regulatory compliance. “Does Bank of America, a Ripple partner, feel comfortable with the decision or wait to see if the SEC appeals Judge Torres’ ruling?” “Remember that the SEC can file a notice of appeal and later withdraw it,” the lawyer writes.

Furthermore, Deaton believes Ripple CEO Brad Garlinghouse will be content to sign a settlement check if the SEC classifies all future XRP sales as non-securities and does not file an appeal. Why? Because this would result in an immediate restoration of cash to the United States. However, a settlement would only be required if Judge Torres did not already provide for it in her ruling.

At the time of publication, the XRP price has not yet (much) reacted to the rumor. The market does not appear to give it any credence. XRP was traded for $0.4657.