Ripple-Sec Settlement Prospects Improve After Dismissal of Charges

Legal expert Fred Rispoli has suggested the possibility of a settlement between Ripple and the Securities and Exchange Commission (SEC) following the recent dismissal of charges against Ripple’s top executives. Discussions regarding the potential settlement amounts are currently taking place among the legal representatives of both parties.

Rispoli proposed two likely explanations for the SEC’s decision to drop charges: either the agency recognizes that its case is weak or it has suffered a loss of credibility in court. If the case is indeed found to be weak, it could lead to longer briefing periods during the remedies phase and an appeal of the summary judgment issued on July 13. Conversely, if the SEC’s credibility is in jeopardy, a settlement could be forthcoming.

Although talks about a settlement have been ongoing since the lawsuit began, no agreement has been reached thus far. The court has proposed three potential dates for a settlement conference, but there have been no public updates as of now.

The SEC has faced three defeats since July, which might suggest a shift toward reaching a settlement. While the agency can still appeal to the Second Circuit after the remedies phase, a loss could set a significant precedent for its future approach to cryptocurrency enforcement.

This article was generated with the support of AI and reviewed by an editor.