A crypto advocate highlights what the SEC stands to gain by settling with Ripple
Following reports of Kraken’s settlement with the SEC, an XRP proponent has highlighted what the securities watchdog stands to gain if it chooses to settle with Ripple.
Recall that in December 2020 the SEC charged Ripple and two of its execs – Brad Garlinghouse and Chris Larsen – with offering $1.3B in unregistered securities in the form of XRP. The case has lingered for more than two years, with the parties waiting patiently for the judge to rule on the final outcome of the lawsuit.
While the SEC has been in a legal battle with Ripple for over two years, the securities watchdog has settled with top crypto companies, including BlockFi and Kraken, for violating U.S. securities laws. The SEC’s recent settlement with Kraken attracted the attention of the XRP community, who believe the agency has a lot to gain by settling with Ripple.
How the SEC Could Benefit from Settling With Ripple
In a recent tweet, Bill Morgan, a crypto advocate and lawyer, highlighted five things the SEC could benefit from reaching an agreement with Ripple. According to Morgan, if the SEC settles with Ripple, the blockchain company could pay a huge fine as part of the agreement, just like Kraken did recently. Morgan added that the SEC could get an outcome that justifies the lawsuit against Ripple if it chooses to settle.
Furthermore, the securities watchdog may get to keep the contents of William Hinman’s 2018 controversial documents sealed in the event of a settlement. Morgan added that the SEC might also avoid getting “an adverse decision” on fair notice if it settles with the leading blockchain company. Finally, Morgan said there would be no decision on the blue sky investment contract issue if the parties settle.
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“As we saw this week, this argument has been made for a second time by the defendants in SEC v Wahi. Imagine if Ripple wins on this point,” Morgan added.
It bears mentioning that there is no plan for a settlement between Ripple and the SEC. Ripple has disclosed that it is open to settling with the SEC on the condition that the agency provides clarity for XRP. However, the SEC is not in the mood to reach an agreement with the blockchain company as it believes Judge Analisa Torres will grant a summary judgment ruling in its favor.
The parties have filed their respective summary judgment motions and replies. Prominent U.S. defense lawyer James K. Filan speculates that Judge Torres will rule on the final outcome of the suit on or before March 31, 2023. Meanwhile, the XRP community hopes the judge rules in favor of Ripple.
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