Amidst the upcoming closed-door meeting by the SEC, there are speculations circulating about a potential resolution to the long-standing Ripple lawsuit. The regulatory commission recently announced a closed-door meeting scheduled for April 11, 2024, at 02:00 PM (ET), but the details of the agenda have not been disclosed. However, members of the XRP community believe that the SEC may discuss various matters, including the possibility of settling the Ripple lawsuit.
JackTheRippler, a well-known crypto enthusiast, was the first to bring attention to this development, sparking rumors of a potential settlement.
It is important to note that the SEC’s official announcement does not mention Ripple or XRP, leaving it unclear whether the Ripple lawsuit will be addressed during the meeting.
Similar to previous closed-door meetings held by the SEC, the general public will not have access to this event. Only top SEC officials, including commissioners, their secretaries, and other key staff members, will be allowed to attend. They can choose to participate virtually or physically at the commission’s headquarters in Washington, D.C. In November, a similar meeting took place at the SEC headquarters, but it did not result in a settlement in the Ripple case.
As previously reported, the SEC and Ripple participated in a settlement conference on March 29, 2024, before Magistrate Sarah Netburn. This conference was part of a mandatory pre-hearing meeting ordered by the court last year. As of now, there is no official update on the outcome of the conference. While Ripple has expressed its willingness to settle with the SEC under certain conditions, the regulatory agency has not shown any interest in a settlement. It seems determined to seek a resolution through court rulings, although the agency has not entirely benefited from this approach.
For example, the SEC lost the rulings related to Ripple’s programmatic sales and other XRP distributions. The court declared that these transactions do not qualify as investment contracts, as alleged by the SEC.
However, the court did rule that Ripple violated federal securities laws by offering and selling XRP to institutional clients. As a result, the case is now in the remedies phase, with both parties engaged in litigation to determine the appropriate penalty for this violation.
Last month, the SEC filed its remedies-related brief, requesting the court to impose a penalty of nearly $2 billion against Ripple. According to the remedies scheduling order, the blockchain company will submit its opposition on April 22, 2024. Subsequently, the SEC will file its reply by May 6 before the court issues a final judgment.
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