Following the U.S. court’s endorsement of the SEC’s dismissal of the case against Ripple executives, speculation in the XRP community has intensified about a potential settlement of the overall lawsuit.
Prominent attorney Fred Rispoli, supporting XRP in the legal battles, has shed light on the potential case settlement. Rispoli commented on the matter during an interview with the Thinking Crypto podcast host, Tony Edward.
Is a Settlement in the works between @Ripple & the SEC?
Attorney Fred Rispoli shares his thoughts! @freddyriz
Watch the full interview https://t.co/T2KrJC1t7c#xrp $xrp #ripple #sec #garygensler #firegarygensler #subpoenagarygensler #crypto @ThinkCryptoPod pic.twitter.com/AGBrpwc2Cc
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) October 23, 2023
Is Settlement in the Works?
Rispoli first underscored that the SEC would seek an appeal for all the losses it sustained through the court cases. The lawyer noted that an appellate result in the Ripple case may take until September 2025 to surface. Therefore, “anything can happen” between now and 2025.
Furthermore, Rispoli argued that the SEC has come to understand that its credibility with the U.S. court regarding the Ripple case is lost. He highlighted that on numerous occasions, the presiding judges subtly told the SEC its arguments were contradictory. In Rispoli’s words: “That is the judge telling you in the most polite way, ‘I don’t believe anything you’re saying anymore.’”
The lawyer believes the last stage of the Ripple case has come since the SEC realizes its credibility is gone. In parallel, Rispoli suggested that the SEC and Ripple may be tilting towards engaging in discussions about the monetary terms of a possible settlement.
He explained that there is a delicate balance to be struck by Ripple in such negotiations. According to him, Ripple must find a way to signal their willingness to pay a substantial sum while also considering a more hard-line approach that involves fighting to reduce the proposed settlement amount by more than ten times.
Yet, the attorney acknowledged that there are merits to both negotiation tracks. In his words:
“… there’s settlement negotiations. I think they are happening. And I think we’ll get this done sooner rather than later, but we’ll just have to see.”
Settlement in 2023 or 2024?
When asked about the likelihood of the SEC vs. Ripple Labs case settling either this year or the next, Fred Rispoli expressed uncertainty. He suggested that it is easier to predict in November after the outcome of the brief both parties filed. Also, the lawyer pointed out that there is no compelling reason to delay the case any further.