Ripple vs. SEC: Is A Settlement Back On The Table?

On October 3, Judge Analisa Torres denied the US Securities and Commission’s (SEC) motion for an interlocutory appeal in its ongoing legal battle against Ripple. As part of her order, she raised the possibility of a settlement between both parties before the case goes to trial on April 23, 2024.

Ripple And SEC Could Settle Before Trial

While setting down the case for trial, Judge Torres noted that the deadlines outlined in the Court’s Pretrial Scheduling Order were to remain in effect. As part of the pretrial arrangements, counsels for both parties are expected to appear for a final pretrial conference on April 16, 2024.

Before this final pretrial conference, Judge Torres mandated that counsel for both parties, alongside the parties themselves, must meet for at least one hour to discuss the settlement in a bid to avoid any lengthy litigation.

There are no assurances that Ripple and the SEC will settle, nor are they mandated to do so when this settlement conference occurs. However, many will hope for positive results from this process as the trial is projected to last as long as eight weeks, with further appeals expected from the dissatisfied party.

Meanwhile, as many have projected, there is also the possibility of a settlement happening long before then. Pro-XRP legal expert John Deaton once mentioned that both parties could still settle this year if Judge Failla granted Coinbase’s motion to dismiss the SEC’s lawsuit against it. 

Crypto Influencer Zach Rector also stated that both parties are “100%” likely to settle before the case goes to trial. He made this assertion following revelations that began to surface regarding ETH Gate about allegations that the SEC gave Ethereum a ‘regulatory free pass.’ According to him, the SEC won’t want Ripple to call witnesses like the “Ethereum ICO Insider” Steven Nerayoff

Will Hinman Testify?

Besides the pretrial conferences, both parties are also meant to file certain court documents, which will form an integral part of the trial proceedings. One of them happens to be the motions in limine, which are to be filed by December 4, 2023, and opposed by the other party by December 18, 2023.

Following recent developments, especially the ETH Gate and Deaton’s announcement, Ripple is expected to file a motion that will revolve around Bill Hinman testifying in the case, as Deaton had stated that Hinman’s cross-examination would be of “epic proportions.”  

The SEC will likely object to this, considering that the Commission’s credibility could be questioned depending on what the former SEC Director says and what is adduced during his examination. Hinman is said to have discussed with Ethereum’s founders before giving his speech, where he stated that ETH wasn’t a security.