U.S. Judge Sarah Netburn has directed the Securities and Exchange Commission (SEC) and Ripple Labs to determine three mutually convenient days for a potential settlement conference. This is the latest development following a recent legal ruling. The ruling stated that programmatic sales of XRP to retail investors did not constitute securities, resulting in a parabolic rally in the XRP price.
Ripple v. SEC Settlement Imminent?
SEC litigation against Ripple Labs Inc. has kept crypto on edge since late 2020 by presenting the prospect that crypto assets are securities that fall under the commission’s tough regulatory purview. But even as a ruling last week seemed to undermine the regulator’s case, the issue is far from settled. However, this could change soon.
Judge Sarah Netburn has reportedly ordered both Ripple and the SEC to find three mutually convenient dates for a possible settlement conference “if they believe it would be productive at this time”.
Netburn urged the two parties to schedule this meeting six to eight weeks in advance due to the court’s busy calendar.
A settlement conference refers to a meeting between the parties in a suit where they try to reach an amicable resolution to their brawl, therefore avoiding a lengthy trial. In the case of the Ripple vs SEC dispute, Judge Netburn’s proposal of scheduling a settlement conference signifies a chance for both parties to resolve the conflict without moving the case forward to a trial.
SEC Can Appeal Ripple Ruling
Netburn’s settlement recommendation comes after a crucial win for Ripple on July 13. The judge in the proceedings ruled that the XRP token sales on digital asset exchanges weren’t securities even though sales and distribution of XRP directly to institutions were deemed investment contracts.
The cryptosphere delighted in the implication of likely limits to the SEC’s authority to extend a clampdown on an industry it contends is rife with dangerous practices. As a result of Ripple’s partial victory, XRP has been trending upward, potentially implying that it could hit $10. In fact, a lot of crypto exchanges in the U.S. felt that the ruling was a real win for Ripple and relisted XRP.
However, some spectators believe that the summary judgment may rest on precarious ground and may not translate to the crypto sector’s much-anticipated change in the way it’s treated by the SEC. This is because SEC chairman Gary Gensler has hinted that the agency is strongly considering an appeal against Judge Torres’ recent decision in the high-profile enforcement case against Ripple and pledged to continue with enforcement actions.