The post Ripple Lawsuit News: Ex-SEC Lawyer Says There is No Such Thing As ‘Private Settlement’ appeared first on Coinpedia Fintech News
Ripple and the U.S. Securities and Exchange Commission (SEC) are reportedly nearing a resolution to their four-year-long legal battle over the issuance of XRP, which the SEC had alleged to be an unregistered security. The dispute, which began under the Biden administration, has raised questions about the future of the cryptocurrency.
According to Fox News, the delay in reaching a final agreement is due to Ripple negotiating more favorable terms related to a district court ruling that imposed a $125 million fine on the company. The ruling also included a permanent injunction preventing Ripple from selling XRP tokens to institutional investors.
Legal expert Jeremy Hogan suggested that a private settlement with the SEC could bring the lawsuit to an end without the need for a court battle. Hogan stated that if a settlement is reached, the case could be wrapped up in a matter of days, providing much-needed clarity for Ripple and the broader market. This would allow Ripple to move forward, giving institutions the green light to engage with XRP and ushering in a new era for the cryptocurrency.
Hogan had previously said, “The only way the case could “be over” soon is if Ripple and the SEC reach a private settlement agreement (which would vary from the judgment), dismiss the appeal, and then simply never take the terms of the settlement agreement back to the trial court to be ratified. This is possible but, assuming the injunction is the sticking point, the SEC would have to agree not to enforce the Court’s injunction.”
However, former SEC lawyer Marc Fagel pointed out that there is no such thing as a “private” settlement with the SEC. All SEC settlements are public and must be reviewed by a court. Fagel added that while it may seem like a routine process, it is legally required for transparency and oversight.