XRP legal expert Fred Rispoli has made assessments regarding the long-standing legal dispute between the Securities and Exchange Commission (SEC) and Ripple. The legal dispute seems to be in calm waters for now. However, as the next deadline in the Ripple case approaches, Rispoli offers perspectives on the current silence and speculates about potential outcomes.
The Calm Before the Storm? Analyzing the Ripple-SEC Silence
As the legal battle between the SEC and Ripple progresses, Rispoli notes that there has been an unusual lack of information exchange between the two parties recently. In particular, with the discovery phase related to XRP sales set to end on February 12th, Rispoli expresses surprise at the SEC’s lack of any discovery motions, given the historically contentious nature of the legal struggle.
Expecting a move from the SEC, Rispoli anticipates the Commission to present a motion about a week before the deadline. According to Rispoli, the absence of such a step could indicate a surprising softening between the SEC and Ripple and could point to a scenario where both sides are “playing well.”
Possible Scenarios: Settlement or Prolonged Legal Battle
Rispoli summarizes two possible outcomes as legal proceedings approach a critical point. Firstly, he envisions the SEC obtaining and reviewing relevant discovery materials to potentially reach a settlement with Ripple. However, if this does not happen, Rispoli foresees a long legal battle extending to the compensation case scheduled to conclude on April 29th.
Expressing his opinion, Rispoli argues that a settlement would be a more favorable option for the Commission. Considering their recent losses in court, he contends that the SEC securing an “easy win” through a settlement would be strategically prudent.
The SEC’s Dilemma: Settle or Face the Consequences
Rispoli suggests that if the SEC opts for a settlement, they would likely have to accept a lower amount compared to their initial demands. Legal expert John Deaton’s reports show that the SEC has sought over $700 million from Ripple for alleged securities law violations.
With a strong position from previous legal victories, Ripple may resist accepting the SEC’s demands. Drawing parallels with the LBRY case, Rispoli argues that Ripple could be confident that the court will award a lower compensation amount than what the SEC is seeking. Consequently, the expert advises the SEC to consider settling and to seek a compromise with Ripple to avoid potential setbacks in a prolonged legal conflict.
