Attorney Jeremy Hogan believes a private settlement between the U.S Securities and Exchange Commission and Ripple could end the legal battle, eliminate the appeals process, prevent further delays, and provide XRP with the regulatory clarity it requires.
The rumors intensified after well-known cryptocurrency influencer X Finance Bull referred to Hogan’s disclosure as a “bombshell” for XRP.
According to X Finance Bull, such a settlement would allow Ripple to move forward legally, give institutions the confidence to deal with XRP and usher in a new era for digital assets.
Fox Business journalist Eleanor Terrett’s post stating that the lawsuit is “in the process of wrapping up and could be over soon” sparked fresh rumors about a potential settlement.
Jeremy Hogan was immediately drawn to this statement and highlighted how the case might be resolved swiftly. Hogan concluded that a private settlement between Ripple and the SEC was the only practical way to end the legal drama that had weighed negatively on XRP.
This would entail rejecting the SEC’s appeal of Judge Analisa Torres’s decision, preventing a retrial, and negotiating a private settlement that doesn’t need court approval, saving both parties from a protracted legal battle that might go on for years.
Hogan noted a major obstacle, even though a settlement seems to be Ripple’s best option: The SEC had previously obtained an injunction against Ripple that limited some XRP sales.
The SEC would have to consent to not enforcing that injunction for a private settlement to be successful. Hogan surmised that a more deceptive strategy might offer an answer.
The financial watchdog might permit Ripple to register its institutional XRP sales under a more controlled regulatory environment rather than simply lifting the injunction.
SEC partially defeated the cryptocurrency payments company, obtaining a $125 million fine and a permanent injunction restricting XRP institutional sales.
However, people familiar with the matter say that Ripple’s legal team is trying to work out a better settlement, arguing that the new rules call for a re-examination of the fines imposed on the business. As per the attorneys, Ripple shouldn’t be penalized for its previous actions if the SEC’s new leadership plans to reset enforcement policies for crypto companies. These attempts to change the settlement were previously cited as the primary cause of the case’s delay in resolution.
XRP’s classification is False
Meanwhile, John Deaton, a prominent attorney for the XRP community, called out a claim that is making the rounds on XRP’s classification by the financial watchdog as untrue.
The XRP lawyer’s explanation was required since a reiteration of CryptoRus’s initial post implied that the SEC had classified ADA, SOL, and XRP for particular use cases. These consist of smart contracts, voting mechanism security, and financial transactions.
Deaton refuted it as false information. Analysts believe that criticizing the “claim” is correct, even though it might lead to a positive sentiment for XRP.
Experts argue that permitting false claims may eventually harm an asset’s reputation. The significance of Deaton’s warning: Deaton urged XRP holders to exercise caution and not fall for false information
Bad actors might establish a dangerous link to steal holders’ money from such an “alleged role” for XRP. Deaton was therefore driven to correct the record and safeguard XRP users in his post
