What A Ripple-SEC Possible Settlement Could Mean For XRP As Game-Changing Ruling Nears
Pro-Ripple attorney John Deaton has dismissed the rumour as unlikely.
The price of the native token XRP is yet to respond to the speculations.
A fresh rumour is circulating that Ripple and the U.S. Securities and Exchange Commission (SEC) are arranging an undisclosed meeting on May 8. The claim has caused speculation that the discussion could be about a settlement in the duo’s long-standing case.
A Twitter account dubbed Blockchain Daily posted about the rumour, citing unconfirmed sources. “Just in: reportedly Ripple and SEC to hold an undisclosed meeting on May 8th – unconfirmed source.”
XRP community attorney John Deaton quickly dismissed the rumour as unlikely, saying the commission had no reason to go for a settlement before the summary judgment was out. According to Deaton, such a step could only happen if the presiding judge rules in favour of Ripple.
‘‘This is not how a settlement happens. First, I believe the only time a settlement occurs, in this case, is after a ruling by Judge Torres. That happens if Ripple wins so Gensler can save face and get a political win via settlement. Sorry, it’s not going to happen,’’ he wrote.
Deaton also argued that due to market manipulation and insider trading regulations, the commission could not set a meeting, leak information about it, and influence the market. Instead, how it could happen, in his view, is that Ripple and the SEC could meet and enter into a settlement before presenting it to the presiding judge.
Lawsuit plagued with decision delays
The rumours and speculations come when the crypto community is growing impatient concerning the outcome of the long-awaited Ripple and SEC case. Deaton had earlier speculated that considering the previous cases handled by Judge Torres, the Ripple community could welcome the summary judgment by last month.
A month ago, to bolster its fair notice defence against the regulator, Ripple filed a Letter of Supplemental Authority, referring to a case involving a takeover bid by Binance.US of Voyager Digital. In the case, the presiding Judge Michael Wiles, among other things, dismissed the commission’s claims that the Voyager token (VGX) amounted to an issue of securities.
Nonetheless, the crypto community has seemingly taken the rumour with a pinch of salt per the current price of XRP, which changed hands at $0.46 at press time, a difference of +0.91% in the past day.