In the story of Ripple vs. SEC over XRP, speculation is rife about a possible truce between the two giants. Recently, a U.S. district court decided to steer the Ripple lawsuit towards settlement talks, sparking fresh debates within the XRP community. This development comes after Judge Phyllis Hamilton dismissed several class action claims but allowed the trial against Ripple CEO Brad Garlinghouse to proceed.
Here’s what you need to know about this development.
Judge Hamilton dismissed the federal and state class action claims against Ripple but kept an individual claim under California law alive. In a 2017 interview with Canada’s BNN Bloomberg, Ripple CEO Brad Garlinghouse stated he was “very, very long” on XRP. However, the lawsuit claims he sold millions of XRP during that same year.
As per the latest move, expert testimonies were also set aside for now. The case has been handed over to Magistrate Judge Robert Illman to help both parties settle.
However, the judge’s decision has raised questions about its effect on the broader Ripple vs. SEC case. There is speculation that the SEC might use this case to support its appeal against an earlier ruling that XRP is not a security. However, legal experts believe that even if Ripple faces an unfavorable outcome, it might not have a significant impact on the larger lawsuit.
On the other side of the ring, the SEC is wielding its power, to impose a hefty $2 billion fine against Ripple for alleged securities law violations. In response, Ripple’s Stuart Alderoty didn’t hold back, slamming the SEC’s demands as unjust, citing inconsistencies, and accusing the regulatory body of making misleading statements.
Former SEC lawyer Marc Fagel stated that Ripple’s biggest concern is the SEC potentially using the California case to support its appeal against Judge Torres’ summary judgment on XRP in the Second Circuit. However, the court must first determine if XRP sales were securities to address the fraud issue.
Both the Pro-XRP advocates Bill Morgan and Marc Fagel also noted that the lawsuit may not have broader implications even if Ripple faces an adverse finding.
Following the court’s decision, XRP’s price dropped to $0.486 but stabilized around $0.489. It briefly went over $0.50 but then fell back. Trading volume increased by 9% in the last 24 hours, showing that traders are still interested.
It’s not over yet!
The crypto community is on tenterhooks, eagerly awaiting further developments in this gripping legal fight. While Ripple has an upper edge on the case so far, the destiny of XRP hangs in the balance.
What do you think? Will Ripple settle with the SEC, or are we headed for a brutal legal battle?
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