The legal battle between Ripple and the Securities and Exchange Commission (SEC) has been going on for a long time. In recent developments, XRP lawyer Bill Morgan announced that the possibility of a settlement is “close to zero” as the Kraken exchange uses the decision in the Ripple case in the case with the SEC.
Will there be an agreement between Ripple and the SEC?
There has been a new development in the legal fight between Ripple and the Securities and Exchange Commission (SEC). XRP lawyer Bill Morgan explained that the possibility of a settlement is “close to zero” as the Kraken exchange uses the decision in the Ripple case in the case with the SEC. Morgan’s statement came after Kraken exchange quoted and summarized an important part of the XRP case in its lawsuit against the SEC.
Kraken argued that securities require a certain relationship between an issuer and a buyer. However, the SEC claimed that this relationship does not exist for tokens such as ALGO, ADA and MATIC sold on the Kraken exchange. Morgan emphasized that Kraken’s main exchange platform operates on a blind bid/ask basis, similar to the scheduled sales in which Judge Torres found that XRP is not an investment contract. He even reminded that some of Ripple’s programmed sales took place on the Kraken exchange.
Reaching a compromise is unlikely
Morgan noted that the summary of the SEC and Ripple case argued that there was no connection between the issuer company and the buyer, and Kraken applied this reasoning to 11 issuers of tokens that the SEC claimed were crypto asset securities. According to Morgan, this will pose a major obstacle to resolving the SEC and XRP case if Judge Torres’ summary judgment decision stands and is not appealed.
Morgan interpreted Kraken’s use of Judge Torres’ finding regarding programmatic sales to dismiss its own case as an indication that the SEC had a strong motivation to appeal Judge Torres’ decision. In light of these developments, Morgan announced that reaching a compromise in the SEC and Ripple case does not seem possible at the moment. Morgan’s statements indicate that the case between the SEC and Ripple is unlikely to result in a settlement. The Kraken case could weaken the SEC’s arguments against Ripple and tilt the case in Ripple’s favor.
How might this impact the SEC’s settlement arguments?
Meanwhile, Kraken CEO Jesse Powell is worried about the SEC retaliating against the exchange following congressional testimony in which Kraken testified before House committees and advocated for a more definitive legal framework on digital assets. There, Kraken proposed placing restrictions on the SEC’s undefined jurisdiction to call crypto ‘securities’.
Powell believes the SEC’s real goal is “simply retaliation, intimidation and harassment” against Kraken. As the SEC v. Ripple case continues, the impact of Judge Torres’ decisions is spreading throughout the crypto and finance industry. According to Bill Morgan, Kraken strategically used precedents that increased the complexity in the Ripple case to get the SEC to implement settlement actions.
Morgan’s statements indicate that the case between the SEC and Ripple is unlikely to result in a settlement. The Kraken case could weaken the SEC’s arguments against Ripple and tilt the case in Ripple’s favor. This could also be an important development for the cryptocurrency market.
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Will Ripple Agree with the SEC? Lawyer Says the Probability is ‘Close to Zero’!