The addition of settlements to the meeting agenda raised speculation on the social media platform that the SEC was finally going to end its two-year-long court battle with Ripple.
The United States Securities and Exchange Commission (SEC) has unexpectedly canceled a closed-door meeting scheduled for Thursday, July 18, without providing a reason.
The financial watchdog updated its official website to reflect that the meeting, which was supposed to take place at 2:00 p.m. US time, will no longer occur as planned.
While the SEC did not disclose the agenda for the gathering, leaked internal documents on X showed that the financial watchdog was going to discuss issues related to the settlement of injunctive actions, administrative proceedings, litigation claims, and other matters.
Speculation and Reactions
The addition of settlements to the meeting agenda raised speculation on the social media platform that the SEC was finally going to end its two-year-long court battle with Ripple, a blockchain payment infrastructure firm.
🚨 BOOOOOOOM! private executive meeting at their headquarters in Washington for this Thursday (18 Jul-24)! Reliable sources have informed us that this meeting is connected to the #Ripple vs #SEC resolutions and the finalization of the court case! #XRP pic.twitter.com/9lEy33mPaI
— Brett Hill (@Brett_Crypto_X) July 12, 2024
Two days ago, members of the crypto Twitter community had fun predicting the potential outcome of the meeting, with some believing that the canceled meeting would definitely see the end of the case.
“I mean, they’ve had about 150 of these nearly-weekly meetings since the case was filed, and Crypto Twitter was convinced a settlement was being discussed at every one of those meetings, but this is DEFINITELY the one,” wrote a pseudonymous X user, Marc Fagel.
Another user echoed the same sentiment as Fagel, saying that the canceled meeting would lead to the settlement of the protracted legal battle between the two. According to him, “Gary Gensler is feeling the heat and he’s exhausted knowing the end is near”, referring to his tenure as the SEC chair.
However, the SEC has canceled the meeting, which was supposed to see many SEC commissioners and officials in attendance, and the case still remains unresolved.
The SEC vs Ripple Legal Battle
The ongoing legal battle between the SEC and Ripple started in December 2020 when the financial watchdog brought a civil lawsuit against the firm for offering unregistered products (XRP) to its American customers.
The SEC claimed that the digital asset used by Ripple for payments is a security and should be regulated under its purview. However, last year, the blockchain company secured a partial victory in the case, with the court declaring that XRP does not constitute the qualities of securities.
Since then, the case has passed through various stages, with the two parties currently fighting to reach an agreement on the appropriate penalty for Ripple’s alleged violation of securities laws.
The financial watchdog is seeking up to $2 billion in disgorgement, while Ripple is pushing for a reduced fine of $10 million. The argument is currently being reviewed by US District Court Judge Analisa Torres, who initially ruled against the SEC last year.
Meanwhile, many in the crypto industry believe the case has significantly impacted the growth of XRP. Industry analysts believe the digital asset could see its price reach $18 per token when the legal dispute is finally resolved.
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