In what is a rather surprising development, both the US Securities and Exchange Commission (SEC) and Ripple have been ordered to explore settlement options. Subsequently, this means that there is the potential for both sides to settle.
Fox Business reporter Eleanor Terrett reported the order that came from Judge Sarah Netburn this week. Specifically, she had ordered both sides to agree on three convenient dates to schedule a settlement conference. Additionally, remarking that the settlement should come “if they believe it to be productive at this time.”
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Ripple and the SEC Can Still Settle
Over the last two years, the ongoing legal dispute between Ripple and the SEC has dominated the digital asset industry. Moreover, that development came to a head last week when a judge ruled against the security status of Ripple. Therefore enforcing what the asset has routinely defended against the regulator.
Now, both Ripple and the SEC have been ordered to explore settlement options. Indeed, Terrett reported that the court has requested both sides arrive at three “mutually convenient dates” for a settlement conference. If both sides do move forward with the selected dates, a settlement is not out of the question.
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Following the ruling, SEC Chair Gary Gensler stated that he was “disappointed” with the ruling. Specifically stating that it was disappointing to hear what the judge said “about retail investors.” Alternatively, the ruling was undoubtedly a key win for the industry. Following its consistent struggle with an unclear regulatory standard and an enforcement-first approach by the agency.
According to the report, any scheduled settlement conference is recommended to be set 6–8 weeks in advance. Judge Netburn noted this as important due to the busy schedules of the courts. Therefore, the prospect of a settlement is unlikely to progress for at least a month. However, a settlement would certainly have a massive impact on the industry as a whole.