A joint letter submitted by Ripple and the SEC —to the Federal Judge, Analisa Torres of the US District Court for the Southern New York District— has jeopardized the prospect of a quick settlement. The letter says:
“There is no prospect for settlement at this time.”
The Counsel for both parties—having met, conferred, and discussed settlement—do not believe that there is a prospect for settlement at this time. However, the parties will notify the Court if they reach any settlement in principle.
The letter also mentions that all discussions about the settlement were held only with the SEC’s division directors who already left the agency:
“Defendants agree with the statement, but note that previous settlement discussions took place under a previous administration and were principal with relevant division directors who have since left the SEC.”
The case between Ripple and the SEC may continue until at least August
Earlier last month, Ripple’s CEO—Brad Garlinghouse—revealed that their attempts to settle the SEC’s charges were unsuccessful. However, the embattled company continues to hang on to a vague hope that the Biden administration will be more lenient toward its policies.
The issues between Ripple and the SEC started in December last year when the SEC took Ripple to Court over unregistered sales of XRP. While the case seems like it will drag on at least until August, this is one of the most significant issues involving the SEC within the cryptocurrency industry.
According to U.Today, Ripple and the SEC have refused to expedite the trial initiated by Judge Torres. The case will be over no earlier than August 16, the day all discovery is supposed to be completed. A pretrial conference has also been scheduled for February 22, 2021.
That said, Gary Gensler (who was nominated as the SEC chairman by President Joe Biden in January) explicitly stated that viewing XRP as security was a “strong case,” which may take longer than expected.