Ripple’s legal team reportedly has no intentions of reaching a settlement in their lawsuit with the U.S. Securities and Exchange Commission (SEC).
Ripple is being sued by the SEC for allegedly selling XRP as an unregistered security beginning in 2013. The top US financial regulator also alleges that XRP remains an unregistered security to this day.
Fox Business correspondent Charles Gasparino tells his 114,000 followers on Twitter that the San Francisco-based payments company informed the media outlet that they didn’t plan on settling with the SEC – and that they can prove inconsistencies in the policies of SEC chair Gary Gensler.
“BREAKING:
Ripple’s legal team tell @FoxBusiness they have no plans to settle with @SEC_Enforcement over lawsuit on XRP, confident they can show GaryGensler in pursuing the case is picking winners and losers in the #Crypto business to the detriment of innovation. Story developing.”
However, crypto legal expert Jeremy Hogan, who has covered the lawsuit closely, notes that “legal teams NEVER say they want to settle” because that would be “a sign of weakness.”
Last month, Hogan said that while many XRP investors hope for a settlement sooner rather than later, the slow nature of the legal process means that the suit is likely to drag on at least until early 2022.
He noted that the case’s expert discovery phase doesn’t end until November, which means it could be hard for either party to negotiate a settlement if they still don’t know the extent of the other side’s case.
“The problem with a settlement between now and November 12 is that the parties won’t know how strong each side’s position is until after discovery closes. So even if we are looking at a slap on the wrist settlement of millions of dollars – which is kind of funny to say – how many millions are we talking about? 10? 20? 200? A thousand?
You think that Ripple isn’t going to care about the difference between paying $20 million versus $200 million? I think any business cares about that and is willing to wait an extra couple of months in order to potentially save millions of dollars.”
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