Major SEC Announcement on Feb 10th: What Will It Mean for Kraken or Ripple?

Eleanor Terrett, a crypto reporter for FOX Business, has claimed that the United States Securities and Exchange Commission (SEC) is expected to make a potentially impactful statement on February 10. 

The announcement has generated widespread speculation and conjecture among the crypto community on Twitter. Terrett speculates that the statement may relate to the SEC’s ongoing investigation into potential breaches of securities law by the prominent cryptocurrency exchange, Kraken.

Settlement On The Horizon?

Others in the crypto community believe that the SEC’s announcement may pertain to the ongoing dispute between Ripple and the SEC. There has been much speculation about the possibility of a settlement between the two parties. This is further fueled by a Twitter poll conducted by crypto attorney and Ripple Amicus Curae John Deaton, in which a majority of participants predicted that a settlement would occur in the first quarter of this year.

However, a settlement between Ripple and the SEC would have devastating consequences for the cryptocurrency sector. The industry has already suffered numerous setbacks over the past year and can ill afford any additional damage. A settlement would be the ultimate worst-case scenario and could have far-reaching impacts on the crypto landscape.

Ripple’s Stance: XRP Classification Is Key

Previous statements made by Ripple CEO Brad Garlinghouse suggest that the company is open to the possibility of reaching a settlement with the SEC, but only if XRP is not classified as a security. This could involve an agreement not to disclose any documents obtained during the litigation, as suggested by crypto attorney John Deaton.

Deaton’s forecasts for 2023 also indicate that a settlement in the Ripple lawsuit may not be reached until after a ruling has been made by Judge Torres. This suggests that a verdict from the court may be more likely than a settlement, but it is important to wait and see how the situation develops before making any conclusions.