Settlement Talks Between Ripple Labs and SEC
After years of litigation, Ripple Labs and the United States Securities and Exchange Commission (SEC) appear to be heading toward a settlement of their long-running lawsuit. On April 10, the same date when the SEC held a closed-door session, the two parties filed a joint appeal to defer their respective appeals, showing mutual intent to dispose of the matter outside of litigation.
The SEC lodged its complaint against Ripple in December 2020, charging that the company had been offering unregistered securities by selling XRP tokens. The case instantly became a lightning rod in the broader fight over how to regulate cryptocurrencies in the US.
Another major occurrence in 2023 was when Judge Analisa Torres declared that XRP isn’t necessarily a security when it’s sold on public exchanges.
Signs of a Settlement
Crypto analyst John Squire pointed out that this move, coupled with rising activity from XRP whales and institutional players, suggests major discussions are taking place behind closed doors. “All signs are converging on a very specific moment: tomorrow,” Squire stated. “A day that could mark a turning point in XRP’s history.” He further speculated that if a settlement is reached, it could trigger the next big move for XRP: the launch of an XRP ETF.
On April 15, ProShares filed for an XRP ETF with the SEC, joining a growing list of asset managers, including Bitwise, Grayscale, CoinShares, 21Shares, WisdomTree, Franklin Templeton, and Teucrium, vying for regulatory approval.
If a settlement is reached, it would eliminate XRP’s regulatory gray area, validating its status as a compliant digital asset. “Such a settlement would be a strong signal that $XRP is no longer in regulatory limbo,” Squire added. “That kind of clarity could unleash a new wave of institutional interest and capital.”
According to Squire, April 21 could become a pivotal date in XRP’s journey. He believes that’s when the long-rumored Ripple-SWIFT collaboration might officially be announced, potentially marking another leap forward for XRP in international finance after it acquired the Hidden Road.
Adding fuel to the optimism is the appointment of Paul Atkins, a known advocate for cryptocurrency and CEO of Patomak Global Partners, as the incoming SEC Chair. His leadership is expected to be more crypto-friendly in comparison to Gary Gensler’s, possibly encouraging the SEC to drop the case against Ripple altogether.
The anticipation of a favorable outcome has already begun to impact XRP’s market performance. According to data from Whale Alerts, a Ripple whale recently transferred 131 million XRP in a single transaction between two wallets. Today, XRP is trading above $2, with its trading volume up by 6.57%, despite a 4.63% price dip over the last 24 hours. Also, options trading activity has seen growth, with options volume surging by 84.73% to $1.01K and options open interest increasing by 13.52% to $549.87K.