Despite the legal victories of Ripple, the court recently issued an order concerning the remedies phase of the lawsuit.
As the United States Securities and Exchange Commission (SEC) gears up for a closed-door meeting, crypto community members are abuzz with anticipation for a potential settlement of the longstanding legal battle between the SEC and Ripple.
According to the official announcement, the expected participants for the closed-door meeting are top SEC commissioners, counsels, secretaries, and essential staff.
The meeting, scheduled for Thursday, November 30, will be held at the SEC’s headquarters in Washington, D.C., and the primary points of discussion will center on settling injunctive actions and administrative proceedings, raising hopes for a potential resolution to the ongoing legal dispute which have lasted for two years.
XRP Army Expects SEC to Settle Lawsuit with Ripple
Given these crucial talking points, there is optimism within the XRP community that the financial regulator may consider exploring a settlement with Ripple, potentially concluding the extended legal conflict.
In a post on Twitter, now X, pro-XRP enthusiast Amelie is hopeful the upcoming meeting will end the longstanding legal battle with the SEC.
Another closed meeting from the SEC at November 30, 2023❗️
— 𝓐𝓶𝓮𝓵𝓲𝓮 🍭 (@_Crypto_Barbie) November 21, 2023
The legal showdown between the SEC and Ripple started in 2020 when the SEC brought a lawsuit against the company, claiming its token, XRP, is a security. The financial watchdog also alleged that the blockchain payment infrastructure provider violated other federal securities laws in the United States, including selling the token without proper registrations.
The case reached a turning point earlier this year in July when US District Judge Analisa Torres ruled that XRP and most Ripple transactions do not meet the criteria for securities. However, the court did categorize Ripple’s past sales to institutional clients as investment contracts. The judge also turned down the SEC’s motion to appeal the ruling.
SEC Drops Charges against Ripple Executives
Last month, Ripple achieved a second legal victory as the SEC dropped all charges against two key executives. The regulator initially alleged that Brad Garlinghouse, the company’s CEO, and Chris Larsen, the co-founder, had assisted the company in violating federal securities law. The judge determined the accusation to be linked to unregistered sales of securities. A recent court filing on October 19 revealed that the SEC has agreed to dismiss these charges with prejudice.
Despite the legal victories, the court recently issued an order concerning the remedies phase of the lawsuit. This phase will determine the suitable penalty Ripple may face for its breach of the law through institutional sales of XRP.
While a decision in the remedies phase is expected by the summer of 2024, there are indications that the SEC might challenge the decision on Ripple’s programmatic sales of XRP and other distributions immediately after the proceeding. The court had previously rejected the SEC’s initial attempt to appeal the ruling, instructing the agency to await resolution of all pending issues.
Currently, the only pending matter in the case is the remedies phase. Once resolved, the SEC retains the full right to appeal the court’s decision on July 13.