Ripple and SEC Could Reach a Settlement Before Trial
Judge Analisa Torres has denied the SEC’s motion for an interlocutory appeal in the ongoing legal battle against Ripple. However, she has suggested the possibility of a settlement between both parties before the trial begins on April 23, 2024. The court’s Pretrial Scheduling Order remains in effect, and counsels for both parties are expected to attend a final pretrial conference on April 16, 2024.
Mandatory Settlement Conference
Prior to the final pretrial conference, Judge Torres has ordered that counsel for both parties, along with the parties themselves, must meet for at least one hour to discuss the possibility of a settlement. Although there is no guarantee that Ripple and the SEC will settle during this conference, many hope for positive results as the trial could last up to eight weeks with potential appeals.
Speculations on Settlement
There is speculation that a settlement could occur even before the trial begins. Legal expert John Deaton believes that if Coinbase’s motion to dismiss the SEC’s lawsuit against it is granted by Judge Failla, it could pave the way for a settlement between Ripple and the SEC. Crypto influencer Zach Rector also predicts a settlement before trial due to recent revelations about alleged favoritism towards Ethereum by the SEC.
Potential Testimony from Bill Hinman
In addition to the pretrial conferences, both parties are required to file court documents that will be crucial for the trial proceedings. Ripple is expected to file a motion involving Bill Hinman testifying in the case. This comes after Deaton claimed that Hinman’s cross-examination would be significant. The SEC may object to this motion as Hinman’s testimony could impact its credibility since he previously stated that ETH was not a security after discussions with Ethereum’s founders.
Hot Take: Will Ripple and the SEC Reach a Settlement?
The denial of the SEC’s motion for an interlocutory appeal suggests that the court is keen to proceed with the trial. However, Judge Torres’ mention of a possible settlement indicates that she sees value in both parties resolving their differences outside of court. With various factors at play, such as Coinbase’s motion and revelations about the SEC’s treatment of Ethereum, it remains to be seen whether Ripple and the SEC will reach a settlement before the trial commences. The outcome of this case will have significant implications for the crypto industry as a whole.
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