Judge Netburn Orders US SEC And Ripple For Settlement, What It Means For XRP?
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In a recent development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres ruled that XRP sales are not securities. Following this decision, the case has been referred to Magistrate Judge Sarah Netburn for general pretrial proceedings. In a significant move, Judge Netburn has ordered both the SEC and Ripple to participate in a settlement conference.
The settlement conference aims to resolve the dispute between Ripple and the SEC, considering that XRP sales are not considered securities on cryptocurrency exchanges but are treated as such when sold to institutional investors. The court has instructed both parties to agree on three mutually convenient dates to schedule the conference. However, it is important to note that settlement conferences must be scheduled at least 6-8 weeks in advance due to the court's busy calendar.
The recent ruling by Judge Torres has sparked discussions about the possibility of a settlement between Ripple and the SEC. While some believe that a settlement is likely, others argue that the SEC may appeal the decision. Charles Gasparino, a senior journalist at FOX Business, expressed his confidence in the SEC appealing the ruling. Ripple CEO Brad Garlinghouse also suggested that the SEC would face a lengthy process if it decides to appeal.
There are speculations that the SEC may need to settle not only with Ripple but also with Coinbase, as taking the lawsuits further could have significant consequences based on precedents set in the XRP case. One potential area for settlement could be the issue of institutional sales.
The XRP price experienced a significant rally of 85% to reach a high of $0.88 following the summary judgment. However, it later corrected due to the uncertainty surrounding the possible SEC appeal and profit-taking. Currently, XRP is trading sideways, with a price of $0.74. The trading volume has also decreased by 37% in the last 24 hours.
The outcome of the settlement conference and any subsequent appeals or decisions will have a significant impact on the future of XRP and its classification as a security. It is an important case to watch for those invested in Ripple and the broader cryptocurrency community, as it could set a precedent for how regulators view and regulate digital assets.
Disclaimer: This article is not financial advice. It is for informational purposes only. Please do your own research before making any investment decisions.
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