Although the battle over XRP has been mostly won by the token issuer, it is still not the end of the proceedings. For this reason, Judge Sarah Netburn has issued an order to the Securities and Exchange Commission (SEC) and Ripple Labs, to create a new space in which the conflict can be resolved through a settlement.
Settlement incentive
The legal odyssey between the SEC and Ripple Labs Inc. has kept the cryptocurrency world in suspense since late 2020. The question of whether crypto assets should be treated as securities, subject to strict SEC regulation, continued to be a point of debate. Although a recent ruling suggested that the regulator may be in the wrong, the ruling is still far from final.
As a result, Judge Sarah Netburn issued an order to both the SEC and Ripple for the parties to communicate in order to find three convenient dates for a potential settlement conference, should they find it productive. This invitation is an attempt to build a bridge between worlds that have so far clearly not gotten along.
The proposed settlement conference is an opportunity for the litigants to face each other in a spirit of cooperation, rather than fighting a lengthy battle in court.
XRP on the gas
The troubled ocean of the cryptocurrency industry is now alive with hope that the SEC’s restrictions and limitations on the field may be eased. Ripple’s win has contributed to a burst of euphoria in the market, indicating the potential for significant growth in XRP, which many observers believe could even reach the symbolic $10 threshold. Many, including many U.S. cryptocurrency exchanges, are celebrating the victory as a step forward for the entire ecosystem.
However, as always with change, there are also doubts. Will this ruling be solid enough to ensure a long-term change in the SEC’s approach to cryptocurrencies? The agency’s chairman, Gary Gensler, has signaled his intentions, pointing to the possibility of appealing Judge Torres’ decision. The cryptocurrency world is thus aware that this is not the end of the story.
Waiting time
Now we are facing a moment of choice on the part of the SEC and Ripple. The parties are faced with the decision whether to bet on transformation and understanding, or return to the beaten path. No matter what the future holds, this moment marks a milestone on the map of the cryptocurrency maze. It reminds us that even in the darkness there is a fresh light that leads us to new and as yet unknown solutions.
