Ripple SEC Settlement To Impact Crypto Firm’s Future Operations

XRP enthusiasts have branded the potential settlement as a “showdown.” This label has sparked a heated response from pro-XRP lawyer Bill Morgan

In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), XRP enthusiasts have been eagerly awaiting the potential settlement, which some have dubbed a “showdown.” However, pro-XRP lawyer Bill Morgan has taken issue with this label and also highlighted a major obstacle that Ripple could face after a settlement.

Key Takeaways

Pro-XRP lawyer Bill Morgan has criticized the notion of a “showdown” in the potential Ripple SEC settlement.

According to Morgan, a settlement is unlikely to happen soon, which contradicts recent statements from Ripple CEO Brad Garlinghouse.

The lawyer also noted that the settlement could impact Ripple's future operations, particularly regarding further sales of XRP.

Setting the Record Straight on XRP Lawsuit Settlement

Morgan took to X, a XRP community platform, to share his thoughts on the matter. He began by addressing the use of the term “showdown” to describe the potential settlement, which he feels is inaccurate.

“This is unlikely to happen but if it does it is a compromise not a big win,” wrote the lawyer. “It means both parties give up something. Both parties also likely agree to end the litigation including appeals.”

Highlighting the complexities and misconceptions surrounding the potential resolution of the high-profile case, Morgan's statements carry significant weight.

The SEC filed a lawsuit against Ripple in December 2020, alleging that the company raised over $1.3 billion through sales of XRP, a token that the SEC classified as an unregistered security at the time.

In a 2024 court ruling, Judge Analisa Torres nuanced this interpretation by stating that certain “programmatic sales” of XRP did not constitute securities transactions.

One X user expressed their skepticism about a settlement without major concessions from the SEC. “I don’t see a point in Ripple settling unless the SEC forever guarantees to appeal nothing after Judge Torres's final ruling,” they wrote.

Responding to this user's comment, Morgan clarified the nature of settlements, stating, “Settlements generally end matters in dispute including appeal rights in the current proceedings.”

However, the lawyer went on to highlight another obstacle that Ripple might face following a settlement, particularly regarding further sales of XRP by the company.

“The more likely difficulty is other Ripple XRP sales since December 2020 and future Ripple sales of XRP,” noted Morgan, alluding to the possibility of the SEC pursuing separate actions or continuing to scrutinize Ripple's operations.

Former SEC lawyer Marc Fagel also shared his thoughts on the matter, echoing Morgan's skepticism about the Ripple SEC settlement, especially in light of the financial demands being made by the SEC.

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