Ripple and SEC Rumored to Discuss Possible Settlement

  • The XRP community attorney speculated that a settlement between Ripple and the SEC may occur after a victory for Ripple.
  • Ripple is currently in court to battle allegations by the SEC that it conducted an unregistered securities offering.
  • Rumors have been circulating about discussions between Ripple and the SEC over a possible settlement.

Rumors of Settlement Discussions Between Ripple and SEC

Reports have recently surfaced claiming there have been talks of a possible settlement between Ripple and the U.S. Securities and Exchange Commission (SEC). The lawsuit, which alleges that Ripple engaged in an unregistered securities offering, has been ongoing since late 2020. According to XRP community attorney John E Deaton, such a settlement could only be reached if Ripple were to win its case against the SEC in court.

Background of Lawsuit

In December 2020, the U.S. Securities and Exchange Commission (SEC) filed suit against Ripple Labs Inc., two of its executives, and XRP II LLC alleging they had violated federal securities laws by engaging in an unregistered offering of digital assets worth billions of dollars. The complaint further stated that since 2013, these entities had sold over $1.3 billion worth of XRP tokens without registering them as securities with the commission or obtaining any exemption from registration requirements as mandated by law.

Ripple’s Defense

In response to these charges, Brad Garlinghouse- CEO of Ripple- argued that XRP should not be classified as security due to its decentralized nature as well as its existing use cases prior to being listed on exchanges for trading purposes. In addition, he also maintained that none of their activities constituted market manipulation or fraud as alleged by the regulator; rather, they simply facilitated transactions involving secondary market trading for XRP holders who sought liquidity for their investments without creating any new tokens themselves during this process.

XRP Community Attorney’s Comments

John E Deaton- attorney representing members of the XRP community- recently shared his thoughts on what it would take for Ripple to settle with the SEC on Twitter. He believes that such an event is unlikely unless there is a victory in court first as this would provide some much needed legal clarity around crypto assets such as XRP before proceeding with negotiations between both parties involved in this dispute.

Conclusion

It remains unclear at this stage whether or not discussions are actually taking place between both sides given how recent these rumors are but it certainly appears like something is brewing behind closed doors despite no official statement from either party yet confirming these reports true validity thus far