Ripple Lawsuit Update: Former SEC Official Reveals Where They Are In Negotiations

There have been rumours that the US Securities and Exchange Commission (SEC) and Ripple may be in negotiations to reach a settlement. A former SEC official has stepped in and provided insights on why that might not be the case. 

Former SEC Official Dismisses Rumors Of A Potential Ripple Settlement

Former SEC lawyer Marc Fagel has dismissed rumors of a potential settlement between the SEC and Ripple. The Founder of Dizer Capital Yassin Mobarak had raised the possibility that the SEC was looking to have a closed-door meeting to discuss a potential Ripple settlement. However, Fagel mentioned that the Commission has had these kinds of meetings almost every week since the lawsuit against the crypto firm was filed. 

The former SEC official suggested that the closed-door meeting that the SEC was having was routine and didn’t mean that the regulator was considering settling with Ripple. There have continued to be talks about the SEC and Ripple potentially reaching since the case began. However, nothing has ever truly materialized as both parties have remained at loggerheads and have instead chosen to let the court decide. 

Pro-XRP lawyer Fred Rispoli had also recently discussed the possibility of Ripple and SEC reaching settling at this point, stating that a pre-judgement settlement is unlikely at this point although they could negotiate on unresolved arguments. The court is expected to give judgment soon as it relates to remedies, with Rispoli speculating that the ruling could come by the end of this month. 

The SEC has asked the court to order a pecuniary fine of $102.6 million against the company, although they had initially asked for almost $2 billion. Their current ask of $102.6 million is still far below Ripple’s proposed remedies, with the crypto firm asking for a penalty of $10 million to be awarded against them. 

Rispoli speculates that Judge Analisa Torres would likely award a penalty of less than $25 million and $0 disgorgement against Ripple. 

XRP’s Price Sparking Optimism Ahead Of Ruling

XRP’s price is sparking optimism among members of the XRP community ahead of the court’s ruling. The crypto token is up by over 38% in the last seven days, which is making crypto enthusiasts believe once again that there might be a massive rally in store for the crypto token. There is also the feeling that Judge Torres’ ruling is likely going to be once again in favor of Ripple as she awards a penalty way below the SEC’s proposed remedies.  

Such a ruling can undoubtedly spark further moves to the upside for XRP, with the crypto token already eyeing the $1 price target. Crypto analysts like JackTheRippler had previously predicted that XRP could rise to as high as $100 when the case between the SEC and Ripple finally concludes.