Yerevan (CoinChapter.com) – The US Securities and Exchange Commission (SEC) and Ripple Labs blockchain company filed a joint radaction request to Magistrate Judge Sarah Netburn to seal several documents for both parties. Judge Netburn approved the request on June 9.
In hindsight, the SEC filed the lawsuit against Ripple Labs in December 2020, accusing the startup of selling illegal securities in the form of its XRP token, gaining profit, and “cheating investors in the US and all over the world”. After long-lasting see-saw proceedings, Ripple managed to gain leverage. Some experts, like attorney Jeremy Hogan, think the lawsuit will end in a settlement soon enough.
Read more: SEC slaps down Ripple’s fair notice defense; What’s next?
James K. Filan, a lawyer directly involved in the case, tweeted on the most recent development. He also provided the request and subsequent approval document.
What does that mean for the lawsuit?
Some experts believe the seal of documents means both parties strive to downsize the escalation and solve the matter ‘behind closed doors’. Mr. Hogan provided his input on the sealed exhibits, claiming that the SEC is grasping at straws not to allow a legal precedent that will affect all the future lawsuits the agency files.
The attorney was also vocal in his views on the possible settlement. He believes it will include Ripple paying a penalty and will “contain a term that includes limitations on the sales of XRP released from escrow”.
Where is XRP?
After the lawsuit was filed, many exchanges like Bittrex, CrossTower, and BinanceUS discontinued their XRP listings, hurting the token’s liquidity. In case of a positive outcome for Ripple, XRP might also regain support from several exchanges and institutional investors.
The SEC previously filed a request for a 60-day extension for the Ripple discovery case. The blockchain company stated in the motion to deny the said request, that delaying the resolution would be an “existential threat” for XRP.
The token traded at $0.86 in the European session Friday, still failing to log significant gains.
XRP’s value is dependent on the outcome of the lawsuit. Supporters of Ripple are hopeful that the lawsuit will end sooner rather than later, as the SEC no longer has a leg to stand on. Mr. Hogan believes the settlement is near, and the seal of exhibits request is a sign of the agency’s desperation. The outcome of the lawsuit is not yet clear, as the crypto community watches closely. The final ruling in this lawsuit would set a precedent for the SEC’s future actions.
