Ripple Executives May Have Leverage for Settlement Negotiations, Says Lawyer
The recent dismissal of charges by the SEC against Ripple executives Brad Garlinghouse and Chris Larsen has brought optimism to the crypto community. However, attorney Fred Rispoli suggested in a recent interview that the executives may have more leverage to negotiate additional terms, such as attorney fees or penalties.
Implications of SEC’s Losses
Rispoli discussed the implications of the SEC’s losses in the case and the potential for a settlement. He argued that the SEC may have suffered more losses than commonly acknowledged, with as many as six over the past three years. The SEC’s aggressive pursuit of the case did not yield positive results, leading to a loss of credibility in the court’s eyes.
Changing Mindset of the SEC
According to Rispoli, multiple judges expressed a loss of faith in the SEC’s arguments, signaling a change in perception. This shift may prompt the SEC to consider a settlement rather than continuing with the case.
Settlement Negotiations Underway
Rispoli suggested that settlement negotiations are likely underway, including discussions about potential settlement figures. However, the challenge now lies in finding the right approach to convey Ripple’s willingness to pay a substantial sum to swiftly resolve the matter.
Negotiation Strategies
Rispoli explained that Ripple’s negotiation strategy could involve offering to pay more than they should if the case goes to trial. Alternatively, they may adopt a hardline approach and contest the proposed settlement amount.
“And what I’m saying right now with the SEC is they’re sitting on 770 million right now that they could completely lose and could evaporate into nothing if Ripple wins on appeal. So there’s more for the SEC to lose than Ripple to lose where we are in the case, which is why now the tables have turned, and I think it’s just better for them to settle.”
Hot Take: Ripple Executives Hold Leverage in Settlement Negotiations
The recent dismissal of charges against Ripple executives has opened up the possibility of settlement negotiations with the SEC. Attorney Fred Rispoli suggests that these executives may have leverage to negotiate additional terms and highlights the implications of the SEC’s losses in the case. The changing mindset of the SEC, combined with their loss of credibility, may push them towards considering a settlement. However, finding the right approach to convey Ripple’s willingness to resolve the matter swiftly remains a challenge. Rispoli also presents different negotiation strategies that Ripple could employ. Ultimately, he believes that settling would be more beneficial for the SEC given their potential losses if Ripple wins on appeal.
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