XRP Update: Ripple Labs and SEC Joint Letter Rules Out Possibility of a Settlement Before Trials Commence

Published by
XRP Update: Ripple Labs and SEC Joint Letter Rules Out Possibility of a Settlement Before Trials Commence

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.”

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.

Advertisement

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.

Advertisement

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025
  • Bitcoin News

Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH

The Bitcoin ETFs have seen a huge turnaround this week, recording their largest weekly inflows…

October 4, 2025
  • 24/7 Cryptocurrency News

Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown

Shiba Inu’s Layer 2 network, Shibarium, has returned online following a $4 million exploit that…

October 4, 2025
  • 24/7 Cryptocurrency News

FLOKI Makes History With First ETP in Europe as Price Surges 30%

FLOKI has announced the launch of the first BNB chain exchange-traded product (ETP) in Europe.…

October 4, 2025