As the long-awaited Ripple (XRP) litigation approaches its climax, experts in the crypto law sphere have begun to engage in intense speculation regarding the probable verdict. Last week, Marc Fagel, a seasoned SEC attorney, and vocal Ripple supporter, surprised many by asserting that a settlement in the case was imminent. Fagel’s statement instantly triggered a flurry of curiosity within the XRP community, prompting followers to seek further clarification.
Fagel elaborated on his prediction, pointing to a recent unsealing order that strongly hinted at the court’s decision being all but finalized. On June 13, following prolonged wrangling between Ripple and the United States Securities and Exchange Commission (SEC), the sealed Hinman records were finally made accessible to the public. Responding to Fagel’s revelation, a Twitter user pondered whether this premature unsealing suggested that the case might not proceed to trial.
The tweet implied the possibility of the judge granting only a partial summary judgment intended for disclosure purposes. Fagel, however, firmly disavowed any speculation, emphasizing that the trial remained the appropriate venue for the unsealed papers’ significance. He conjectured that this move might indicate the preparation of specific evidence for trial, cautioning against further suppositions.
Bill Morgan, an attorney, and passionate XRP enthusiast, concurred with Fagel, expressing his belief that specific issues would proceed to trial. Morgan contended that neither party would emerge victorious through summary judgment alone.
When the summary judgment briefing for the lawsuit concluded in December of the previous year, John Deaton highlighted three potential outcomes and their far-reaching implications. Firstly, the court might fully endorse the SEC’s stance.
Additionally, the court could rule in favor of Ripple, rebuking the SEC for persistently asserting that XRP qualifies as a security—an assertion deemed baseless by many. The third plausible outcome involves Judge Torres determining that Ripple “offered” unregistered securities, thus necessitating a middle ground. However, given that XRP and its secondary market sales remain intricately tied to Ripple, neither can be classified as securities.
Deaton emphasized that regardless of the verdict, the Ripple case holds significant weight as “ground zero,” establishing a crucial precedent within the industry. Consequently, the crypto community eagerly anticipates the resolution of this landmark lawsuit. As the court proceedings draw to a close, the fate of Ripple hangs in the balance, with profound implications for the broader cryptocurrency landscape.
