Future

Circuit

Impact

In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), XRP enthusiasts have branded the potential settlement as a “showdown.” This label has sparked a heated response from pro-XRP lawyer Bill Morgan, who criticized the notion. Moreover, he also highlighted that the Ripple SEC settlement could catalyze a major obstacle for the firm. 
<h2 id="ripple-sec-settlement-to-impact-crypto-firm-s-future-operations">Ripple SEC Settlement To Impact Crypto Firm’s Future Operations</h2> 
Morgan ditched the notion of a “showdown” on the XRP lawsuit settlement. In addition, he also ditched the likelyhood of a settlement soon, which contradicts Ripple CEO Brad Garlinghouse’s recent stance. The lawyer wrote on X, “This is unlikely to happen but if it does it is a compromise not a big win. It means both parties give up something.” 
Morgan’s stance highlights the complexities and misconceptions surrounding the potential resolution of the high-profile case. The SEC’s lawsuit against <a href="https://coingape.com/xrp-news-lawyer-seeks-ripple-lawsuit-drop-amid-kamala-harris-crypto-pivot/" target="_blank" rel="noopener">Ripple</a>, initiated in December 2020, alleged that the company raised over $1.3 billion through sales of its XRP token. 
The SEC classified the token as an unregistered security at the time. However, a 2024 court ruling by Judge Analisa Torres nuanced this interpretation by stating that certain “programmatic sales” of XRP did not constitute securities transactions. 
Meanwhile, a user user challenged the idea of a settlement without significant concessions from the SEC. They argued, “I don’t see a point in Ripple settling unless the SEC forever guarantees to appeal nothing after Judge Torres’s final ruling.” 
Morgan responded by clarifying the nature of settlements, noting, “Settlements generally end matters in dispute including appeal rights in the current proceedings.” However, the lawyer spotlighted another obstacle that Ripple might face after a settlement. 
Morgan noted, “The more likely difficulty is other Ripple XRP sales since December 2020 and future Ripple sales of XRP.” Former SEC lawyer Marc Fagel echoed Morgan’s skepticism about the Ripple SEC settlement. He also cited the financial demands made by the SEC. 
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<h3 id="ex-sec-weighs-in-on-settlement-penalty">Ex-SEC Weighs In On Settlement &amp; Penalty</h3> 
Fagel noted, “A settlement would mean neither party can appeal (which is probably why it won’t settle).” He also shed light on how the American watchdog is unlikely to receive the hefty penalty levied on the blockchain payments firm. He noted, “The SEC requested a $1B penalty (plus about $1B in disgorgement + interest). That is the only SEC position before the court. (They won’t get it; but the numbers have not changed.)” 
Furthermore, Fagel dismissed speculation of the Ripple SEC settlement during the <a href="https://coingape.com/markets/whats-next-for-xrp-price-ahead-of-sec-closed-door-meeting/" target="_blank" rel="noopener">SEC closed-door meeting</a> on July 25. He stated, “I’ve tried to patiently explain to people what closed meetings are, how they work, and why a settlement (if it existed) likely wouldn’t even be calendared at one (as presumably the sole person here who used to attend them). Some appreciate the info; most are just into clickbait.” 
<h2 id="what-makes-the-situation-more-complex">What Makes The Situation More Complex?</h2> 
Earlier, Ripple’s Chief Legal Officer Stuart Alderoty referenced the court’s decision in the Aron Govil case. He emphasizing that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller. Furthermore, Morgan pointed out that this decision could influence the <a href="https://coingape.com/ripple-xrp-case-news-ex-sec-denies-any-settlement-predicts-final-judgment-time/" target="_blank" rel="noopener">Ripple vs. SEC case</a>. 
“If institutional investors suffered no pecuniary harm, the fact that the Second Circuit Court of Appeals did not reconsider Govil is a good thing for Ripple,” Morgan wrote on X. In March 2024, the SEC had argued that institutional investors suffered $480 million in damages due to Ripple’s alleged discrimination during XRP On-Demand Liquidity (ODL) sales. 
The agency also contended that had Ripple registered the sales of XRP, the company would have been obligated to disclose discounts offered to favored institutional investors. Hence, in case of the Ripple SEC settlement, the agency could limit the future sales of XRP by leveraging this argument. In addition, the crypto firm is mulling an IPO in the U.S., however, the regulatory uncertainties have excarberated difficulties. 
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The post <a href="https://coingape.com/ripple-sec-settlement-xrp-lawyer-spotlights-major-obstacle-if-agency-accepts-deal/">Ripple SEC Settlement: XRP Lawyer Spotlights Major Obstacle If Agency Accepts Deal</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Ripple SEC Settlement: XRP Lawyer Spotlights Major Obstacle If Agency Accepts Deal

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Coingape News Media

Інші статті, опубліковані 26 лип. 2024 р.

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