- Former Ripple exec predicts a settlement or dismissal of the SEC case soon.
- Legal experts doubt a countersuit, noting Ripple’s past violation ruling.
- XRP’s regulatory status remains unchanged, despite ongoing legal battles.
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has sparked significant speculation regarding its resolution. Former Ripple executive Sean McBride recently stated that the case could be resolved within the week, either through a settlement or dismissal.
While both outcomes are possible, McBride leans toward a settlement, highlighting its potential to offer a more comprehensive resolution than a dismissal. His comments have prompted a wave of reactions from legal experts, shedding light on the potential scenarios surrounding the case.
Settlement or Dismissal: A Likely Outcome
McBride’s remarks come amid growing anticipation over the outcome of the Ripple-SEC lawsuit. He speculated that the case would likely be resolved soon, with either a dismissal or a settlement on the table.
However, McBride suggested that a settlement is more probable than a dismissal. Ripple and its executives, including CEO Brad Garlinghouse and co-founder Chris Larsen, have reportedly turned the tables on the SEC, shifting the momentum in their favor. McBride even went so far as to say that Ripple and its leaders deserve compensation, reinforcing the belief that a settlement would provide more clarity than a simple dismissal.
While a dismissal could potentially open the door for Ripple to countersue the SEC for damages, McBride believes that private negotiations, or “back channels,” may lead to a settlement. These discussions could involve agreements with the new administration, providing a resolution that avoids further litigation. The possibility of such a settlement has caught the attention of many, as it would likely have significant implications for the broader cryptocurrency market.
Legal Experts Weigh In: A More Complex Situation
Despite McBride’s optimism, some legal experts have cast doubt on the likelihood of a swift resolution. Marc Fagel, a former SEC lawyer, pointed out that a countersuit by Ripple would probably not succeed.
The district court had already ruled that Ripple violated the law, which complicates the prospects for a countersuit. Furthermore, Fagel noted that SEC settlements are typically made public, meaning any private negotiations or back-channel agreements would be highly unusual.
Additionally, attorney Bill Morgan addressed the possibility of a settlement, emphasizing that it would need to address Ripple’s cross-appeal. Morgan also clarified that the key finding by Judge Torres that XRP is not a security remains unaffected, regardless of the case’s outcome. This development has remained a pivotal point in the ongoing legal dispute, as it holds significant consequences for the future of XRP and its regulatory status.
