Crypto Lawyer Outlines Benefits Of SEC-Ripple Settlement

The post Crypto Lawyer Outlines Benefits Of SEC-Ripple Settlement appeared first on Coinpedia Fintech News

Despite the ongoing legal battle between the SEC and Ripple for more than two years, the Securities and Exchange Commission has reached settlements with leading cryptocurrency companies such as BlockFi and Kraken for violating securities regulations in the United States. 

The XRP community has been closely observing the recent settlement between the SEC and Kraken, as they believe the agency has much to gain by reaching a resolution with Ripple.

Could The SEC Benefit From A Settlement?

Crypto lawyer and enthusiast Bill Morgan recently outlined in a tweet five potential benefits the SEC may reap from settling with the cryptocurrency firm. He suggests that similar to Kraken’s settlement, Ripple may be required to pay a substantial fine as part of any agreement with the SEC. The lawyer also pointed out that if the SEC settles the matter, it may support the agency’s case against Ripple.

A settlement could also grant the securities regulator permission to keep the controversial documents produced by William Hinman in 2018 confidential. Additionally, Morgan asserts that a settlement between the SEC and Ripple, the leading blockchain company, may avoid the risk of receiving an unfavorable ruling on the concept of fair notice. 

Moreover, a successful settlement would avoid a decision on the blue sky investment contract issue.

In its lawsuit against Ripple, the SEC claims that the company engaged in securities fraud by artificially inflating the prices of XRP, Ripple’s native digital currency, through market manipulation and false statements regarding potential partnerships with banks. 

However, Ripple’s CEO Brad Garlinghouse denies these allegations, calling them “ridiculous” and declaring that they are ready to defend their case in court if necessary.