Former SEC official Marc Fagel provides fresh insight on a potential settlement in the ongoing Ripple case.
There have been rumors that the SEC could settle with Ripple before the trial commences. Notably, the rationale behind this speculation, according to some XRP supporters, is to enable the SEC to prevent its former officials from testifying during the trial.
The trial, which relates to the SEC’s case against Ripple’s execs- Garlinghouse and Larsen- is scheduled for Q2 2024.
Fagel Weighs In On Potential Settlement
Interestingly, Marc Fagel, a former SEC official and expert in securities litigation, has provided fresh insight on a potential settlement in the Ripple lawsuit.
During a discussion on X, an XRP enthusiast asked him to comment on whether the SEC will settle with Ripple before the scheduled trial commences.
Responding, Fagel highlighted one major reason that could motivate the SEC to reach an agreement with Ripple before the trial.
According to Fagel, the SEC would settle with Ripple before the trial only if the claims against Brad Garlinghouse and Chris Larsen were considered “high risks.”
“I don’t think testimony from former SEC officials is a major factor,” he added.
I think if the SEC is interested in settlement, it’s because the remaining claims against the individuals are high risk. I don’t think testimony from former SEC officials is a major factor.
— Marc Fagel (@Marc_Fagel) September 10, 2023
Deaton Outlines SEC v. Ripple Settlement Path
Speculation regarding a potential settlement between Ripple and the SEC has heightened in recent times. Amid these speculations, some XRP enthusiasts predict that Ripple could announce a settlement at its victory party scheduled to be held on September 29 in NYC.
However, Crypto-Law.US founder John Deaton said there will be no settlement announcement at the event.
Per Deaton, a settlement could only happen before the end of the year if the judge in charge of the SEC v. Coinbase lawsuit grants the crypto exchange’s motion to dismiss the case.
While the SEC has not indicated any plans for a settlement, Ripple said it is open to such an arrangement. However, Ripple’s only condition for a settlement was if the SEC deemed XRP as non-security.
Judge Netburn to Oversee Possible Conference
Recall that Judge Analisa Torres declared that XRP itself is not a security. After the ruling, Judge Torres transferred judiciary oversight of selected portions of the case, including a settlement, to her colleague Magistrate Sarah Netburn.
Notably, Magistrate Netburn ordered the SEC and Ripple to select three dates for a possible settlement conference. Per the order, the parties are required to submit the dates at least six to eight weeks beforehand due to the court’s busy schedule.
At press time, the parties have not yet complied with the directive. Consequently, this has further bolstered speculation that the parties, especially the SEC, may not be interested in any settlement.