Ex-SEC attorney says Ripple lawsuit likely to end in settlement
Trump SEC team may prioritize settlement.
As the deadline for the U.S. Securities and Exchange Commission (SEC) to file its initial brief in the Ripple lawsuit approaches, speculation about a potential settlement is gaining momentum.
Former SEC enforcement attorney Marc Fagel has suggested that the incoming Trump administration and SEC Chair-designate Paul Atkins may prioritize settling the case rather than pursuing an appeal, according to Coingape.
While Judge Analisa Torres ruled partially in favor of both parties last year, both Ripple and the SEC have appealed the unfavorable portions of the ruling. The court previously ordered Ripple to pay a $125 million penalty for its sales to institutional investors.
The high-profile case has centered on allegations that Ripple Labs conducted $700 million in unregistered securities sales through its XRP token.
Settlement Likely Under New Leadership
Fagel argues that the odds of a settlement increase under new leadership, as Atkins and his team may opt to drop the appeal and focus on regulatory clarity. "The government agency didn’t lose but won in part and lost in part," Fagel explained, emphasizing that a settlement would address lingering uncertainties.
Meanwhile, pro-XRP lawyer Jeremy Hogan has forecasted an April or May timeline for the lawsuit's conclusion, citing the complexities of the appeals process and the need for thorough internal reviews.
Ripple CEO Brad Garlinghouse has criticized the SEC’s handling of the case, highlighting its chilling effect on U.S.-based innovation. However, analysts believe resolving the lawsuit could open the door for XRP exchange-traded fund (ETF) approval and spur a rally in the token’s price.
With the SEC’s appeal deadline set for January 15, the crypto community is closely watching for signals of resolution that could redefine regulatory standards for digital assets.
Last November 29, blockchain tracker Whale Alert flagged two major XRP whale transactions totaling 139.39 million tokens. One of these transactions involved 104.39 million XRP, worth $167 million, being transferred to an unknown wallet.
