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The legal tussle between the SEC and Ripple could be approaching a final resolution, as court records show that the parties just had a settlement conference.
According to the CourtListener legal database, the United States District Court for the Southern District of New York recently scheduled a settlement conference regarding the ongoing legal tussle between the SEC and Ripple.
The conference, held yesterday at 3:10 PM (ET), was presided over by Magistrate Sarah Netburn. Interestingly, an X user @bobaboy76239 shared a photo of Ripple execs Brad Garlinghouse and Stuart Alderoty entering a federal courthouse in New York yesterday.
Spotted @bgarlinghouse and @s_alderoty at the federal courthouse in NY today. Settlement talks?? pic.twitter.com/UCcPPFL2np
— BobaFete (@bobaboy76239) March 29, 2024
Former SEC Official Weighs In
The photo elicited a series of reactions, as XRP community members were surprised that a settlement conference had happened out of the blue.
Responding to queries about the matter, former SEC official Marc Fagel pointed out that the “surprised” settlement conference was a mandatory pre-hearing meeting, which was part of the original scheduling order of the lawsuit.
Last year, Judge Analisa Torres ordered the SEC and Ripple to select three dates for a settlement conference. She ordered the parties to meet for at least one hour if they considered a settlement appropriate.
Yesterday’s settlement conference involving the SEC and Ripple was part of last year’s scheduling order.
No Update
In the meantime, there is no official update regarding the outcome of the settlement conference. Prominent crypto journalist Eleanor Terrett disclosed that a Ripple spokesperson told her there was “nothing to share” about the conference.
According to Court Listener there was a "Settlement Conference" scheduled for today, March 29th. @Ripple gave me a "nothing to share" comment. https://t.co/Tf6MOhFDOD
— Eleanor Terrett (@EleanorTerrett) March 29, 2024
The comment indicates that nothing significant happened at the conference or that the parties agreed to conceal details of the meeting.
However, the chances of the parties agreeing to put an end to the multi-year legal tussle are minimal. Fagel puts the odds at about 0%, thus implying that the parties would not settle anytime soon.
It means the parties have settled, Ripple will pay $2B, and it is now illegal for you to trade XRP.
No. Sorry, I read that wrong. It's a mandatory pre-hearing settlement conference, part of the original scheduling order. Odds of settlement: about 0%.
— Marc Fagel (@Marc_Fagel) March 29, 2024
SEC Seeks Nearly $2B in Penalties Against Ripple
The development comes less than a week after the SEC filed its opening remedies brief. Notably, the SEC asked the court to impose a fine of $1.95 billion against Ripple.
According to the regulatory agency, the massive fine it seeks would deter others from violating federal securities law in the future.
Meanwhile, Ripple would file an opposition to the SEC’s remedies brief by April 22. The company is expected to provide facts and arguments as to why the court should not grant the SEC’s requests.
Afterward, the SEC would file its reply to Ripple’s opposition on May 6, while the court would schedule a date for the final judgment.