On March 29, Ripple senior executives held a settlement conference with the US Securities and Exchange Commission (SEC) officials, fueling rumors about a potential case resolution between the entities.
Trending photographs on social media platform X (formerly Twitter) showed Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty outside the federal courthouse in New York.
Is Ripple Settling With the SEC?
The trending images, alongside the court filing, fuelled speculations that the long-standing legal battle might finally be resolved. However, legal experts have cautioned against reading too much meaning into these developments.
Retired securities lawyer Marc Fagel dispelled any notion of an imminent settlement. He clarified that such conferences are standard procedural measures and do not necessarily signal resolved disputes. Typically, these involve discussions devoid of commitments from either party.
“It’s a mandatory pre-hearing settlement conference, part of the original scheduling order. Odds of settlement: about 0%,” Fagel commented.
Meanwhile, a Ripple spokesperson told Fox Business reporter Eleanor Terrett that there was “nothing to share.” This prompted Terrett to suggest that the meeting between the SEC and Ripple could merely be a mandatory meeting preceding the upcoming pretrial conference.
“Seven years after the DAO report—which the SEC claims provided clarity to crypto—the SEC is still litigating eight major crypto cases in federal courts with no end in sight. Something’s broken,” he remarked.
Earlier in the week, the SEC disclosed its pursuit of a $2 billion fine against Ripple. The regulator alleged that the firm distributed a substantial amount of XRP in violation of federal securities laws. Moreover, the financial watchdog asserted that it designed the fine to deter similar actions from the crypto industry.
However, Ripple and its executives have vowed to contest these demands. Alderoty said the huge fines were designed to “punish and intimidate” Ripple and that it was not a faithful application of the law.
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