XRP Lawsuit Update: Prominent Crypto Attorney Speaks Out on Estimated Settlement Deadline
In the ongoing Ripple vs SEC lawsuit, a potential settlement is on the horizon, according to the opinions of a popular lawyer and an XRP user. The expected terms of the settlement involve Ripple paying a reduced monetary penalty of approximately $50 million and no further injunctions on XRP sales to U.S. institutional investors.
According to the latest joint status report, both the SEC and Ripple have submitted their reports to the United States Court of Appeals for the Second Circuit. The Ripple vs SEC lawsuit settlement may take longer than many expect due to the rejection of the motion for an indicative ruling.
Marc Fagel, a former SEC attorney, confirms that Ripple has already paid a $125 million penalty in cash (not XRP) into escrow, as ordered by the court. However, the lawsuit remains unresolved because both parties have yet to withdraw their appeals. Fagel explains that the settlement process typically requires 1-2 months for the SEC to finalize enforcement decisions following key rulings, so any settlement outcome may crystallize by late August or early September.
One X user, Mark Paul, believes a settlement could be reached with a probability of 70-90%. He estimates that the settlement, if it occurs, would involve a $50 million penalty and the lifting of restrictions imposed by Judge Torres. However, former SEC lawyer Marc Fagel disagrees with this prediction, stating that the odds of a $50 million penalty and no injunction are 0%.
The current injunction, imposed on Ripple in August, prevented the company from selling XRP to US-based institutional participants. If an indicative ruling is granted, both parties can then file a motion with the Court of Appeals for a limited remand. Until then, the joint status report asks the court to hold off on filed appeals.
In summary:
- The settlement is expected to involve a reduced penalty of around $50 million (from $125 million initially paid), with no further injunction on XRP sales in the U.S.
- The injunction prevented Ripple from selling XRP to US-based institutional participants.
- The settlement timeline is contingent on formal withdrawal of appeals and SEC internal approvals in the coming weeks.
- The Ripple vs SEC lawsuit settlement may take longer than many expect due to the rejection of the motion for an indicative ruling.
- The XRP community is expecting an update on the Ripple vs SEC lawsuit on August 15.
- Despite the disagreement about the specific terms of the potential settlement, one XRP user, Mark Paul, predicts a settlement might occur with a probability of 70-90% and include a reduced penalty of approximately $50 million, similar to the expectations in the ongoing Ripple vs SEC lawsuit.
- In the Ripple vs SEC lawsuit, the ongoing dispute centers on the sale of XRP to U.S.-based institutional investors, as an existing injunction has previously prevented Ripple from doing so. This restriction may potentially be lifted if a settlement is reached and approved by the court.
