In light of the most recent filing by the SEC in the ongoing Ripple case, members of the XRP community are speculating that a settlement between the parties may be reached this summer.
The SEC has responded to Ripple’s supplemental authority letter regarding the Consent Judgment in the SEC v. TerraForm Labs (TFL) lawsuit. Ripple had submitted this letter on June 13 to further bolster its opposition to the SEC’s demand for $2 billion in remedies. The TFL Consent Judgment stipulates that the defendant must settle the SEC lawsuit by paying over $3.58 billion in disgorgement and a civil penalty of $420 million.
Ripple has argued that the civil penalty equates to 1.27% of TFL’s total sales of $33 billion and is significantly less than what the SEC is seeking in its case. In addition, Ripple has emphasized that while the TFL judge uncovered fraudulent activities totaling over $40 billion, there is no evidence of fraud in Ripple’s case.
The SEC has emphasized that the TFL Consent Judgment was the result of a settlement and may not be directly applicable in determining remedies. Ripple’s request to link the TFL settlement to its penalty determination was challenged by the SEC, which highlighted factors such as TFL’s bankruptcy, the destruction of crypto assets, and reimbursement of investors’ losses as crucial in reaching a settlement.
The SEC further critiqued Ripple’s comparison of TFL’s civil penalty to its gross sales, arguing that a comparison to gross profit would yield a significantly higher penalty ratio. This discrepancy in calculations could potentially affect the penalty amount imposed on Ripple.
In response to the SEC’s arguments, XRP community members have speculated that a settlement between the SEC and Ripple could be on the horizon this summer. Abdullah Nassif, host of the Good Morning Crypto podcast, highlighted the reduced settlement amount proposed by the SEC and initiated a poll among XRP enthusiasts to gauge their opinions on a potential settlement. The majority of votes so far indicate optimism towards a settlement being reached this summer.
Please note that this article is for informational purposes only and should not be construed as financial advice. The opinions expressed are those of the author and do not necessarily reflect The Crypto Basic’s views. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic assumes no responsibility for any financial losses incurred.