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Ripple SEC Lawsuit May Be Resolved In Upcoming Closed Meeting on July 25

Key Points:

Brad Garlinghouse hints at a possible resolution of the Ripple SEC lawsuit, with a key meeting scheduled for July 25.
The ongoing lawsuit centers on whether XRP is an unregistered security, with the SEC alleging Ripple raised $1.3 billion unlawfully.

Ripple CEO Brad Garlinghouse has indicated that the company might soon resolve the protracted Ripple SEC lawsuit. Speculation suggests that a settlement could be announced following a closed-door meeting with the SEC next week, scheduled for July 25.

Ripple SEC Lawsuit May Have an Upcoming Settlement

The central issue in the Ripple SEC lawsuit is whether the company’s native cryptocurrency, XRP, constitutes an unregistered security. The SEC has alleged that Ripple unlawfully raised $1.3 billion through XRP sales, leading to a lawsuit against Garlinghouse, co-founder Chris Larsen, and Ripple Labs in 2020. Despite these allegations, XRP has risen to become the fourth-largest cryptocurrency by market capitalization.

Garlinghouse recently avoided confirming ongoing settlement talks but expressed optimism about a resolution of the legal issues. Meanwhile, Ripple’s Chief Legal Officer Stuart Alderoty noted the anniversary of a mixed court ruling, saying that while the case is not entirely resolved, the court’s determination that XRP is not a security remains unchanged.

The SEC’s upcoming meeting will cover various topics, including potential settlements and resolution of litigation claims. Although some in the crypto community speculated that this meeting could lead to an announcement, it has been rescheduled from last week.

Additionally, former SEC lawyer Marc Fagel has clarified that there is currently no active settlement negotiation, and both Ripple and the SEC are awaiting the court’s final judgment on the case’s remedies.

XRP Surges Amid Market Rally and Election Speculation

Ripple’s influence on XRP’s price remains a point of contention within the crypto community. The company periodically releases XRP from escrow accounts, with 80% of the tokens being locked again and the remaining 20% sold to support operations.

XRP has surged over 16% in the past week, reaching approximately 60 cents, in line with a broader cryptocurrency market rally influenced by expectations of more favorable regulatory conditions if Donald Trump wins the U.S. presidential election.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.