There has been discussions suggesting that the SEC might come to an agreement with Ripple before the trial starts. Some XRP supporters believe this could be a strategy to prevent former SEC officials from testifying during the trial proceedings.The trial, which involves the SEC’s case against Ripple’s executives, Brad Garlinghouse and Chris Larsen, is currently slated for the second quarter of 2024.
Fagel Gives Insight On Potential Settlement
Marc Fagel, a former SEC official with expertise in securities litigation, has offered his perspective on the potential settlement of the Ripple lawsuit. During a conversation on X(formerly Twitter) with an enthusiastic XRP supporter, Fagel was asked about the likelihood of the SEC reaching a settlement with Ripple before the scheduled trial.
In response, Fagel pointed out a significant factor that could drive the SEC to consider a settlement with Ripple before the trial begins. According to Fagel, such a settlement would only hold if the allegations against Brad Garlinghouse and Chris Larsen were seen as posing “high risks.”
He also stated,” I don’t think testimony from former SEC officials is a major factor”.
Deaton Outlines SEC v. Ripple Settlement Path
Speculation surrounding a potential resolution between Ripple and the SEC has intensified lately. Amid these speculations, some XRP enthusiasts have predicted that Ripple might announce a settlement during its upcoming celebration on September 29th in New York City.
However, John Deaton, the founder of Crypto-Law.US, has stated that no settlement announcement will occur at the event. According to Per Deaton, a settlement could only materialize before the end of the year if the judge overseeing the SEC vs. Coinbase lawsuit grants the crypto exchange’s motion to dismiss the case.
While the SEC has not publicly acknowledged plans for a settlement, Ripple has indicated its willingness to explore such an arrangement, with the condition that the SEC categorizes XRP as a non-security.
Judge Netburn to Oversee Possible Conference
It’s worth noting that Judge Analisa Torres previously ruled that XRP itself is not a security. Following this ruling, Judge Torres transferred the oversight of specific aspects of the case, including the potential for a settlement, to Magistrate Sarah Netburn, her colleague.
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.
Magistrate Netburn subsequently instructed both the SEC and Ripple to propose three possible dates for a settlement conference. These dates are to be submitted six to eight weeks in advance, given the court’s busy schedule.
As of the press release, neither party has complied with this directive. This lack of action has fueled speculation, particularly regarding the SEC’s level of interest in pursuing a settlement.