No Settlement Talk
You’re unlikely to see any ongoing discussions about a settlement between the SEC and Ripple. This is based on the SEC’s recent motion requesting Ripple to produce audited financial statements from 2022 – 2023 and post-complaint contracts overseeing institutional sales.
Possibility of Settlement In the Future
Although there are no current talks of a settlement, a settlement could potentially happen later on. The SEC might want to settle if they think they can get better terms compared to what a court decision might bring.
There’s a chance for an agreement, but right now, it’s not happening.
Figuring Out Fines and Legal Stuff
As the lawsuit progresses to the remedies stage, there’s speculation about the potential fines Ripple might face for alleged violations related to institutional sales. Deaton talked about the SEC being curious about Ripple’s money records and looking into contracts made after the complaint.
Ripple might show that most institutional sales are okay, and the fine could be somewhere between $10 million and $100 million. Ripple might end up paying much less in fines than the big $200 million they spent on lawyers to defend themselves, as shared by Ripple CEO Brad Garlinghouse.
Looking Beyond the Verdict
Deaton’s perspective goes beyond the ongoing trial, exploring what might happen if there’s an appeal. He’s pretty sure that the Second Circuit, a higher court, will support Judge Analisa Torres’s decision to end the case early.
Deaton believes these decisions would likely hold up even if there’s an attempt to appeal.
Hot Take: The Future of the Ripple Lawsuit
It seems that, for now, a settlement is not in the cards. In the coming months, Ripple may navigate through potentially significant fines, but the appeal process could bring some favorable outcomes for Ripple. Only time will tell what lies ahead for Ripple and the SEC.
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