Retired securities lawyer Marc Fagel dismisses speculations that the U.S. SEC could agree to settle its multi-year lawsuit with Ripple during its upcoming Sunshine Act meeting.
For context, rumors have been spreading in the XRP community that the SEC might discuss a settlement with Ripple during its upcoming closed-door meeting. Top SEC commissioners and officials will attend the meeting, which is scheduled for 2 PM (ET) on July 18.
Potential SEC v. Ripple Settlement
According to the Sunshine Act notice, the SEC officials will focus on four major agendas, including settlement of administrative proceedings and injunctive actions, as well as resolving litigation claims.
With settlement being among the four agendas, XRP enthusiasts speculated that the SEC could officially settle with Ripple, thus ending the multi-year legal tussle.
Popular XRP community figure and Dizer Capital founder Yassin Mobarak recently weighed in on the matter, suggesting that the SEC is unlikely to agree on a settlement with Ripple.
Upcoming Sunshine Meeting Won’t Lead to a Settlement
Reacting, Fagel, who was a former SEC regional director, humorously highlighted a recurring pattern of anticipation and disappointment surrounding the regulator’s closed-door meetings.
He emphasized that the SEC has had about 150 nearly weekly closed-door meetings since it introduced the Ripple lawsuit.
According to him, the crypto community optimistically speculates that the SEC is discussing a Ripple settlement at each of these meetings, often accompanied by the hopeful declaration, “This is DEFINITELY the one!”
However, he suggested that the upcoming meeting is not the one that could lead to a settlement in the Ripple lawsuit.
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!
[Narrator: It's not the one.]
— Marc Fagel (@Marc_Fagel) July 16, 2024
It bears mentioning that almost every SEC’s sunshine closed-door meeting is accompanied by settlement rumors regarding the Ripple lawsuit.
However, the regulator has never hinted at plans to settle with Ripple, even after securing a partial defeat in the summary judgment decision. Some experts suggested that the SEC is bent on using Ripple as an example to deter other crypto companies from violating federal securities laws. Hence, it might not settle with the leading crypto payments company.
Meanwhile, the lawsuit is nearing its conclusion, with the court expected to issue its final decision before the end of the year. Whether the SEC would accept the verdict or appeal the ruling in the Second Circuit remains to be seen.
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