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Ripple vs. SEC: A surprise agreement?

Thu 04 May 2023 ▪ 3 min of reading ▪ by La Rédaction C.
Getting informed Crypto regulation

The highly publicized legal battle between Ripple and the SEC continues to be a hot topic. While waiting for the verdict, analysts are speculating about the possible options for Ripple. A settlement agreement between Ripple and the SEC is still possible, but under certain conditions.

The XRP logo and the SEC emblem

A deal with the SEC could be possible even if Ripple wins the case

The end of Ripple’s legal war against the Securities and Exchange Commission (SEC) is fast approaching. For now, the crypto firm is working to study all its options. An agreement with the SEC is one of them.

According to John Deaton, a lawyer who supports XRP, the idea of a settlement agreement with the regulator is not excluded. On his Twitter account, the lawyer explained why this option, already considered elsewhere, remains entirely plausible. This is even the case if Ripple wins the case.

If Ripple were to reach an agreement with the SEC, it would depend on the nature of the decision in the case. Deaton’s explanations on this matter revolve around several arguments.

The arguments

The first element that would encourage Ripple to sign an agreement is the availability of XRP on major exchanges. Some exchanges, such as Coinbase, have removed the asset from their list of tradeable cryptocurrencies. The immediate accessibility of XRP would be a significant turning point in the decision to negotiate an agreement with the SEC.

Another tipping point is whether Ripple would receive the support of Bank of America. The position of this bank, which is Ripple’s main financial partner, could change depending on whether the SEC decides to appeal or not. This uncertainty could also weigh in the balance of a possible agreement.

The other scenario, no less negligible, although theoretical, is closely related to the SEC itself. According to Deaton, the leaders would quickly sign an agreement if the SEC acknowledges that future sales of XRP do not constitute securities. This is provided, among other things, that it agrees not to appeal the judge’s decision.

Apart from these three options, an agreement between the SEC and Ripple is simply unthinkable. In any case, Ripple’s chances of not getting to that point are significantly high. Recently, John Deaton outlined four scenarios that tend to demonstrate this.

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La Rédaction C. avatar
La Rédaction C.

The Cointribune editorial team unites its voices to address topics related to cryptocurrencies, investment, the metaverse, and NFTs, while striving to answer your questions as best as possible.

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