There has been a new development for the Ripple case, which is expected to end soon. Ripple Labs and the US Securities and Exchange Commission (SEC) have jointly requested a one-week extension to submit uncorrected versions of the Hinman speech documents to court. The court accepted the extension request and pushed the deadline to 13 June 2023. Interestingly, the SEC’s decision not to appeal the court’s decision regarding the disclosure of the controversial documents has fueled speculation about a possible reconciliation between the parties involved in the case. Here are the details…
New development for the Ripple case
Many people wonder why the SEC didn’t file an appeal. According to attorney John Deaton, who was amicus curiae in the XRP case, the commission could have followed a Mandamus Paper, but it would likely fail. Even if the judge allowed them to file an interim appeal on the documents, Deaton believes it would fail. Deaton stressed that he would not overturn the 2nd Circuit Court of Appeals’ decision that the email linked to Hinman’s speech was not protected by attorney-client or Negotiation Privilege.
The lawyer representing the XRP holders denied the rumors that settlement talks were being held between the parties. He pointed out that if the documents in Hinman’s speech were likely to lead to a settlement, it would have happened before they were handed over to the defendants. In a joint statement submitted to the court on May 19, the SEC and Ripple requested an additional week to disclose redacted versions of the Hinman documents, which were ordered by Judge Analisa Torres to be made public by June 6.
The request to move the final disclosure date from June 6 to June 13 caught the attention of various investors following the case. It was noteworthy that both the SEC and Ripple reached a joint decision as counterparties. They also requested a similar timeline for the publication of the original versions of the relevant documents. As we reported as Kriptokoin.com, there are very few examples where both parties make a joint decision.
What do the experts say?
Fred Rispoli, a lawyer specializing in the cryptocurrency industry, commented on the matter, finding the parties’ agreement interesting and suggesting that it could indicate a possible compromise. Rispoli stated that “Ripple will pay a substantial fine and record its future sales on an agreed basis, and XRP will not be considered a security and secondary XRP sales will not be considered a security transaction.”
To elaborate on my own wild speculation, J. Torres' rulings may have prodded the parties into accepting their weaknesses and there is a last ditch effort at settlement. The only settlement that makes sense to me at this point is:
– Ripple pays large penalty, must register its… https://t.co/3QGx8RmtdX
— Fred Rispoli (@freddyriz) May 19, 2023
He emphasized that in this scenario, both sides will have to compromise on many principles and neither side will be able to achieve a clear victory. The conclusion of the joint letter submitted by Ripple Labs and the SEC requesting an extension points to ongoing negotiations between the two parties.
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