A joint letter released by the SEC and the legal counsel of the Ripple Labs has quashed all rumors of a possible out-of-court settlement by the two parties at this time, suggesting the defendant in the case would fight the legal battle in the court itself. The rumors about a possible settlement were rife when Jeremy Hogan, a legal attorney claimed that Ripple might look for a settlement out of the court, however, the filing says the two parties “do not believe there is a prospect for settlement at this time.”
SEC v Ripple: this is what we’ve been waiting for : joint letter – https://t.co/PFZpglqj3I
— Jesse Hynes (@jesse_hynes) February 16, 2021
The joint letter was presented to Federal Judge Analisa Torres of the U.S. District Court for the Southern District of New York which read,
“Counsel for the parties has met and conferred and, having previously discussed settlement, do not believe there is a prospect for settlement at this time. However, the parties will promptly notify the Court if any settlement in principle is reached as to any Defendant.”
The SEC lawsuit against Ripple was filed towards the end of December 2020 for the unregistered sale of security tokens. The lawsuit had an immediate impact on both Ripple’s partnership as well as XRP markets in the US as most of the platforms started delisting XRP tokens while the US Ripple partners like Moneygram also took a back seat suggesting they would wait out for the outcome of the case.
Would SEC’s Lawsuit Hold or Ripple Lab Come Out as a Winner?
The SEC lawsuit against Ripple created two sides in the crypto community, one that was rooting for the SEC to take on Ripple for dumping XRP on investors despite being aware of the circumstances while the other side believes SEC went too hard on Ripple and if anyone is to blame for regulatory unclarity its the regulatory body itself who has failed to implement proper measures to protect the investors.
SEC commissioner Hester Pierce had also expressed a similar view last month when asked about the SEC vs Ripple saga, she had said that the SEC can do better to offer clarity over the regulatory guidelines. The fact that Ripple has distributed and expanded its business for over 5 years using XRP and SEC didn’t bother to intervene back then, and now when investors risk losing millions due to the lawsuit, the regulatory body’s claims of investor protection has baffled many.