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Legal Expert Says Any Rumors About Ripple Vs SEC Settlement Are Nonsense

source-logo  thecryptobasic.com 13 February 2024 09:56, UTC

As the legal tussle between the SEC and Ripple reaches a fever pitch, top legal experts have dismissed new rumors about ongoing settlement talks.

Since the lawsuit between the SEC and Ripple began in December 2020, several rumors have emerged about a potential settlement. However, these rumors have turned out to be false.

Latest Settlement Rumor in SEC v. Ripple

The latest rumor regarding a settlement comes as the SEC compelled Ripple to produce its financial records relating to post-complaint institutional sales of XRP.

Following the SEC’s request, many speculated that a settlement could be on the horizon. People who share this sentiment believe that the commission intends to use the financial documents to negotiate a juicy deal during an upcoming settlement.

Legal Expert Dismisses Latest Settlement Rumor

However, Seedstarter founder Jesse Hynes has dismissed every settlement rumor. According to Hynes, any rumors regarding a settlement are nonsense until it eventually happens.

The legal expert, who has closely followed the SEC v. Ripple legal tussle, noted that settlement discussions are only leaked to the public if one of the parties in the lawsuit plans to use it for power play.

Any rumors about a Ripple & SEC settlement are just nonsense if and until a settlement happens. This isn’t something that leaks and when settlement talks leak it’s often in some form of power play move for leverage. Don’t trust the nonsense

— Jesse Hynes 🌱 (@jesse_hynes) February 12, 2024

Notably, Hynes’ tweet attracted the attention of another notable legal expert, Bill Morgan, who dismissed all settlement rumors.

Reacting to the tweet, Attorney Morgan suggested that settlement discussions are confidential and subject to certain privileges. The pro-XRP lawyer added that people are not given hints about a settlement until it happens.

Motive Behind Growing Settlement Rumors

Seeing XRP enthusiasts flood the community with several settlement rumors is unsurprising. This is because the lawsuit has been having a bearish impact on the performance of XRP.

Notably, the lawsuit caused XRP to miss out on the last bull market- a period when other crypto assets recorded new all-time highs.

As the lawsuit continues to have a bearish impact on XRP, community members are eager for a resolution, either by a settlement or court ruling. The court has already issued vital rulings, with Ripple securing three significant wins against the SEC.

First, the court ruled that XRP in itself is not a security and also declared programmatic sales and other distributions of the coin as non-investment contracts.

The federal court denied the SEC’s attempt to file an immediate appeal, while the commission also dismissed its case against Ripple executives Brad Garlinghouse and Chris Larsen.

In the meantime, the case is in the remedies phase, with the next crucial deadline slated for February 20, 2024. On this date, Ripple is expected to produce its post-complaint financial records in line with the SEC’s request.

The submission of the financial records will mark the end of remedies-related discovery. Afterward, the parties will start submitting briefs with respect to remedies from March 13 to April 29, 2024.