May 28, 2024

Former SEC official Marc Fagel has offered a new perspective regarding a possible resolution in the ongoing Ripple Versus SEC lawsuit.

There have been speculations that the SEC might settle with Ripple before the trial on Ripple executives Garlinghouse and Larsen commences. Some XRP supporters believe that a possible settlement is to prevent former SEC officials from testifying during the trial.

Fagel Weighs in on Possible Settlement

In a recent Twitter discussion, an XRP supporter inquired from Fagel about the possibility of the SEC settling with Ripple before the scheduled trial begins. In response to this inquiry, Fagel emphasized a significant factor that might lead the SEC to opt for a pre-trial settlement with Ripple. 

According to Fagel, the SEC should consider settling if the allegations against Brad Garlinghouse and Chris Larsen are likely to succeed. He also noted that he doesn’t believe testimony from former SEC officials would be a major determining factor in this decision.

John Deaton explains the possible settlement route. 

Some XRP enthusiasts have even speculated that Ripple might reveal a settlement during its victory party scheduled for September 29 in New York City.

However, John Deaton, the founder of Crypto-Law.US, has stated that there won’t be any settlement announcement at the event. Deaton suggests that a settlement could only materialize before the year’s end if the judge overseeing the SEC vs. Coinbase lawsuit grants the crypto exchange’s motion to dismiss the case.

Although the SEC has not shown any intentions of settling, Ripple has expressed its openness to such an agreement, with the condition that the regulator categorizes XRP as a non-security.

Judge Analisa Torres previously determined that XRP is not classified as a security. Following this ruling, Judge Torres transferred the oversight of certain aspects of the case, including the possibility of a settlement, to her colleague Magistrate Sarah Netburn.

Magistrate Netburn to Oversee the Next Court Sitting 

Significantly, Magistrate Netburn had instructed the SEC and Ripple to propose three potential dates for a settlement conference. According to the order, these dates should be submitted six to eight weeks in advance, considering the court’s busy schedule.

As of the moment, neither party has complied with this directive. This situation has led to increased speculation, particularly regarding the SEC’s intentions, suggesting they might not be inclined to pursue a settlement.

While the cryptocurrency community patiently awaits the resolution of the two-year-long legal dispute, the SEC continues to press forward in what many in the industry view as an unnecessary struggle.

The SEC recently submitted a reply memorandum to reinforce its motion to certify an interlocutory appeal. Defense attorney and former federal prosecutor James K. Filan shared this information in a September 8 tweet. 

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