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Ripple Lawsuit: Settlement This Month?

Published 2022-04-05, 06:36 p/m
© Reuters.  Ripple Lawsuit: Settlement This Month?
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We are rapidly approaching a key date in the Ripple Labs lawsuit.

According to legal experts, a settlement may be reached as soon as the end of April. The developers of XRP (CRYPTO:XRP) are widely thought to have the upper hand in a potential trial, which has led some to speculate that the SEC may be willing to settle.

Although no dates have been set in stone, there are several reasons to think that a settlement may be coming as soon as this month. In this article I will explore a few reasons why we might get a settlement soon, and what a potential settlement would mean for XRP holders.

Lawyer cautiously predicts settlement in April There are two main reasons why some people think a settlement to the XRP lawsuit could come this month:

  • A lawyer familiar with these matters cautiously opined that one could be coming. The lawyer in question, Jeremy Hogan, is not working on the case, but is following it closely. Hogan did say that his opinion was just his “best guess,” but being a lawyer, his guess may have some weight.
  • The beginning of the trial is rapidly approaching. According to courtroom filings, the SEC vs Ripple lawsuit will go to trial in August if no settlement is reached. Therefore, if a settlement occurs at all, it is likely to happen soon.
  • What kind of settlement would we be looking at? In its filing, the SEC sought to have Ripple pay out US$1.3 billion plus interest — that is, the proceeds from the XRP coin offering plus a bit more. If the two parties settle, then they will likely agree on an amount much smaller than that. Settlements usually involve some level of compromise by both sides.

    Additionally, many experts think that Ripple is winning in the pre-trial hearings that are now ongoing. They often cite Ripple’s wins on depositions and witnesses as evidence that a trial would likely go its way. Given that Ripple has this “leverage” over the SEC, it would seem likely that the two parties would settle for a relatively small amount.

    What does all this mean for XRP holders? The information we’ve looked at so far suggests that Ripple Labs is not likely to be destroyed by the lawsuit the SEC brought against it. Ripple Labs is working on a number of projects to improve the user experience. It’s busy recruiting banks to use its payment network, and is constantly working to improve its blockchain. Were the SEC to win, then all of this would be called into question. Having to pay out US$1.3 billion would be an enormous resource drain on Ripple Labs, and might interfere with its ability to continue working for the XRP community. So, a win would be bullish for token holders.

    Foolish takeaway The Ripple Lawsuit has been a long and drawn out saga. Between motions, media confrontations, and internet rumours, we’ve heard it all. Potentially, this thing could last all the way to the end of November. But there is a decent chance the whole thing will be over this month.

    The post Ripple Lawsuit: Settlement This Month? appeared first on The Motley Fool Canada.

    Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

    This Article Was First Published on The Motley Fool

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