Rumors started to emerge that SEC Lawsuit v. Ripple Ends in Settlement.
The hallmark case between the Securities and Exchange Commission (SEC) and popular blockchain company Ripple has reportedly been settled, sources familiar with the matter stated.
The lawsuit, which has lasted for more than a year, is rumored to have come to an end with the SEC and Ripple reaching an agreement on what the settlement would be. Per the source, all staff working on the case have been reassigned.
According to one of the sources that made the revelation, an official announcement is expected to be made in the coming week.
“Anyone else heard the rumor? Settled. All staff on the SEC v. Ripple case have been reassigned. A week until the news in public,” a Twitter user with the username @XRP_Production said.
Anyone else heard the rumour? Settled. All staff on the SEC vs Ripple case have been reassigned. A week until the news in public. SEC now hiring to prosecute illegal currencies. The beer in your hand is now champagne. Your VW is now a lambo. The GF that dumped you is calling #XRP
— XRP the Standard Productions (@XRP_Productions) March 4, 2022
Popular cryptocurrency YouTuber Ben Armstrong said he hopes the rumors are true, commenting on how factual the information is.
“I can 100% confirm that I am praying that this is true. It has been included in my nightly prayers since October 1,” Armstrong said.
I can 100% confirm that I am praying this is true. Have included in my nightly prayers since October 1. https://t.co/idpIfrKS10
— Ben Armstrong (@Bitboy_Crypto) March 4, 2022
SEC Says It would Lose Some Cases
Meanwhile, in a recent Fox Business interview, Ripple CEO Brad Garlinghouse said the SEC chairman, Gary Gensler, disclosed that the agency would lose some of its cases.
“He (SEC Commissioners) was interviewed yesterday and commented hey we are gonna lose some cases.”
While it is not clear whether Gensler is referring to the Ripple case, there is a tendency for his comments to be affiliated with the blockchain company.
Ripple CEO also said:
“I was meeting with Chairman Clayton, I met with SEC Commissioners, no one ever once said ‘XRP is a security.”
"I was meeting with Chairman Clayton, I met with SEC Commisioners, no one ever once said 'XRP is a security'." -BGarlinghouse
That's pretty powerful testimony, no? https://t.co/TWqYI12LTz
— Jeremy Hogan (@attorneyjeremy1) March 3, 2022
Recent Developments in the Lawsuit
As reported earlier, the SEC and Ripple were expected to participate in a mediation exercise that would see both parties reach a settlement.
While previous settlement discussions held months ago between the SEC and Ripple did not end well for both parties at the time, the new dialog is expected to yield positive results given the several developments that have occurred throughout the case.
Judge Sarah Netburn has been going through all relevant documents to the case in-camera, including some of the evidence like Hinman’s 2018 speech and Garlinghouse’s discussions with selected SEC representatives, as well as other documents the SEC objected to bringing forward to the court.
With several pieces of evidence believed to indicate that Ripple followed a careful approach to ensure it did not break any securities laws during the XRP offering, it was expected that the SEC would be convinced to enter into settlement talks with the blockchain company.