Former SEC Lawyer Dismisses Speculations of SEC Settling with Ripple in Upcoming Meeting

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As the year progresses, anticipation has heightened for the conclusion of the long-running Ripple VS. SEC lawsuit. Many speculate that both parties will reach a settlement following the upcoming Sunshine Act meeting scheduled for July 18. 

However, former securities lawyer and ex-SEC regional director Marc Fagel has dismissed these speculations. Fagel believes the SEC will not discuss any settlement with Ripple during the meeting. 

Will SEC Settle with Ripple Soon?

The US Securities and Exchange will hold a Sunshine Act meeting at its headquarters in Washington, DC. According to the notice, this closed-door meeting is only accessible to SEC officials.

The meeting will focus on subjects concerning litigation claims resolutions, matters involving enforcement proceedings, and settlement of administrative proceedings. 

Crypto community members speculate the regulator might discuss possible settlement terms with Ripple, given the lawsuit is in its final stages. 

Yassin Mobarak, the founder of Dizer Capital and a top figure in the XRP community, recently commented on the matter. Mobarak suggested that the commission may not agree to settle with Ripple.

OK folks, time for some speculation fun (based on known facts).

This Thursday July 18th, the SEC is having a closed door meeting to discuss the items underlined below.

hmmm….Dare I say Ripple Settlement? 🤔

Probably not, but speculating is fun. pic.twitter.com/MMTJaXSymE

— Yassin Mobarak (@Dizer_YM) July 16, 2024

“hmmm…Dare I say Ripple Settlement? Probably not, but speculating is fun,” Mobarak said.

SEC’s former regional director Marc Fagel also weighed in on the matter. He highlighted the previous anticipation and disappointment surrounding such closed-door meetings. 

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

According to the former securities lawyer, the SEC has held up to 150 nearly weekly closed-door meetings since it filed the Ripple lawsuit. However, to the crypto community’s disappointment, a settlement never came up in any of those meetings. 

While settlement rumors regarding the upcoming meeting have circulated Crypto Twitter, the SEC never hinted that it plans to settle with Ripple. The regulator’s stance remained unwavering despite Ripple’s partial win following Judge Torres’ summary judgment last year. 

Legal experts think the watchdog is intent on using Ripple as a scapegoat to warn other crypto firms against securities law violations. Given this position, the SEC might not agree to settle with the fintech company. 

Meanwhile, the final judgment in the multi-year legal battle is anticipated before the end of the year. It’s still unclear whether the SEC or Ripple will accept the court’s verdict. 

Latest Developments in the Ripple Vs. SEC lawsuit

The securities litigation between the US SEC and blockchain payment company Ripple is nearing its end. The case is now in the remedies stage. Both parties have filed their remedies briefs, and the SEC has also turned in its final response. 

In the SEC’s response filing, the regulator argues that Ripple’s assertions do not nullify the need for penalties to prevent future violations. 

Despite the court’s previous dismissal of Ripple’s fair notice defense, the company argues that its actions were not reckless, and there’s no uncertainty regarding XRP’s legal status.

Ripple says it has complied with rules and cooperated with the SEC since its XRP initial coin offering in 2013.

The SEC has opposed this assertion in its recent response. The SEC argues that even though Ripple has not violated securities law since the lawsuit started in 2020, it doesn’t mean it won’t in the future.

Therefore, the commission seeks court injunctions against Ripple to ensure such actions don’t occur in the future.