Since the United States Securities Exchange Commission (SEC) sued Ripple for illegal offering of securities, the outcome of the case has been argued quite often on crypto Twitter.
The preliminary conference of the case is for next week. Digital currency lawyer shares his opinion on the Ripple-SEC case.
Earlier, the crypto lawyer suggested how XRP might survive the legal battle and mentioned that Ripple is expected to reach a settlement with the federal regulator. The scenario where Ripple wins the lawsuit and replaces Howey’s Test with another new legal identifier for crypto is “delusional,” he said.
Palley pointed out that Ripple, Garlinghouse and Larsen “are going to lose” and believed that unless “there is a limitation argument” or Ripple gets “a sympathetic judge” the co-founders will lose and “probably will settle ”.
On January 8, CEO Garlinghouse mentions on Twitter that Ripple is “trying” to “resolve” the case with the regulator.
A discovery letter from the SEC said lawyers for both sides have met and have already discussed the settlement. However, the parties “do not believe there is a prospect of a settlement at this time.”
The first pre-trial conference between Ripple and Commission officials is February 22.
Meanwhile, Ripple faces yet another case filed by its UK investor Tetragon. Tetragon earlier mentioned that it was seeking to “assert its contractual right to demand reimbursement from Ripple”. That, too, required Ripple’s trading to stop until the company paid off Tetragon’s $ 175 million investment.
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