And another month has passed without a verdict in the legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC). Although several lawyers in the XRP community have estimated that the chances of a verdict by the end of April are very high, Judge Torres of the District Court for the Southern District of New York has yet to issue a decision.
But a few hours ago, a rumor has now surfaced on Twitter which may imply that a decision in the legal battle between Ripple and the SEC is near. However, as this is an unconfirmed rumor from an anonymous source, it should be taken with a grain of salt.
The Blockchain Daily Twitter account said that Ripple and the SEC allegedly held an undisclosed meeting on May 8. Speculation now circulating on Twitter is that it could be a settlement.
🚨JUST IN: RIPPLE AND SEC SET TO HOLD UNDISCLOSED MEETING ON MAY 8 – SOURCE UNCONFIRMED pic.twitter.com/LNrUVCloQ1
— Daily Blockchain (@blckchaindaily) May 1, 2023
However, XRP community advocate John E. Deaton, “bet“that the rumor is false. According to him, SEC and Ripple lawyers can meet whenever they want. “I don’t think they would pick a date in a week and then release it,” writes Deaton, who further assumes a settlement won’t happen that way.
First, Deaton believes a settlement would only come after a ruling by Judge Torres, and only if Ripple wins a big win, allowing Gensler to save face and earn a political victory through a settlement.
Second, according to Deaton, the SEC would not schedule a meeting due to the market manipulation allegation and risk a leak. He thinks that Ripple and the SEC “would meet”, so he hypothesizes:
This unconfirmed source gives the impression that someone wanted to orchestrate a pump.
Why would Ripple settle after winning?
According to John Deaton, under certain circumstances, it may make sense for Ripple to reach a settlement after a potential victory against the SEC. It would be “not like two years ago”, but it would be depend on the decision and whether the SEC would appeal.
Ripple could also be concerned about the regulatory security of its partners. “Does Bank of America, a Ripple partner, feel comfortable with the ruling or is waiting to see if Judge Torres is overturned if the SEC appeals his decision. Remember that the SEC can file a notice of appeal and withdraw it later,” the attorney writes.
Additionally, Deaton thinks Ripple CEO Brad Garlinghouse will be happy to sign a paycheck if the SEC classifies all future XRP sales as non-securities and does not appeal. For what? Because that would mean an immediate return of cash to the United States. But a settlement would also only be necessary if Judge Torres does not already provide for it in her decision.
As of press time, XRP price has yet to react (significantly) to the rumor. The market doesn’t seem to give it any credibility. XRP changed hands for $0.4657.
Featured image from CoinPedia, chart from TradingView.com