John Deaton, a lawyer representing the Ripple project, said Ripple Labs could pay a $250 million fine to settle with the Securities and Exchange Commission (SEC).
Deaton made the announcement in response to questions about whether there could be a partial settlement and partial appeal in the lawsuit between Ripple and the SEC. The lawyer noted that Ripple could pay between $100 million and $250 million if the SEC agreed to a settlement. The company will only settle with the SEC if the securities regulator publicly announces that all current and future XRP sales are not securities, he said.
However, Deaton also made it clear that the SEC would certainly not agree to such a condition from Ripple at a time when the authorities are waging war against the crypto space. Deaton also said that XRP secondary sales were not appealed and Judge Torres could therefore provide more clarity on the matter.
In the meantime, the Ripple community expects the lawsuit to end in the company’s favor. This could be a win-win situation for the project as the XRP token will be re-listed on all major exchanges and made available to all traders.
The case of Ripple vs. SEC is of great importance for the crypto industry. Its positive outcome will serve as a signal to other fintech companies, attracting them to the US. The opposite scenario is likely to lead to an outflow of crypto firms and talent. Moreover, even large American banks are closely monitoring the outcome of the trial.
The essence of the trial is that two years ago the SEC sued Ripple Labs, its former director Christian Larsen and current CEO Brad Garlinghouse for allegedly raising $1.3 billion through the sale of unregistered securities.