Renowned XRP community member and expert, Ashley Prosper, has put forward several reasons to suggest that the long-standing legal battle between Ripple and the SEC may have ended in a settlement. However, it should be noted that this is purely speculative.
In a recent post, Prosper stated, “I cannot confirm that Ripple and the SEC have reached a settlement. But, I can say that it certainly seems that way.”
Prosper highlighted a number of factors that support his assertion. Firstly, he mentioned the recent ruling in the SEC v. Govil lawsuit, where the court rejected the commission’s request to overturn its decision on disgorgement. Importantly, the court ruled that the SEC cannot demand disgorgement from the seller if the buyer hasn’t suffered any financial losses.
Secondly, Prosper criticized the SEC’s remedies-related brief for its failure to identify a single institutional investor who incurred economic losses from purchasing XRP from Ripple.
Another factor that suggests a possible settlement is the occurrence of a settlement conference, which took place without the defendant submitting its remedies-related reply brief. The conference, as ordered by the court, took longer than expected.
It is worth noting that the SEC has now shifted its focus away from Ripple and is concentrating on charging other crypto-related entities, including Ethereum and Uniswap. The SEC has launched an investigation into Ethereum, potentially classifying it as a security. Additionally, it has sent a Wells Notice to popular Ethereum-based decentralized exchange, Uniswap.
Furthermore, Ripple’s plan to launch a stablecoin pegged to the U.S. dollar and the unexpected release of 500 million XRP from the company’s escrow account also suggest a possible settlement. Ripple enthusiasts speculated that the funds from the release will be used to fulfill settlement obligations.
Lastly, an upcoming SEC Sunshine Act meeting has been highlighted as another indication that a settlement may have been reached. It should be noted that the SEC recently held a closed-door meeting on April 11.
However, it is still unclear whether the parties have actually reached a settlement, despite the speculation from Prosper and other XRP enthusiasts. The lawsuit is currently in the remedies stage, and Ripple is expected to file its opposition to the SEC’s brief by April 22.
In a subsequent disclosure, Prosper made some corrections to his earlier remarks. He confirmed that there is no settlement conference scheduled for April 16, as previously stated. He also emphasized that the reason behind the unexpected release of the 500 million XRP had been clarified. It was revealed that this release was part of the scheduled monthly quota of 1 billion tokens and had merely experienced a delay in transactions scheduled for April 1. Despite these corrections, Prosper continued to speculate based on his other assertions.
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