The United States Securities and Exchange Commission and Ripple Labs filed a joint letter before a United States District Judge. That ruled out the prospect of a settlement for the time being.
The letter itself says. “Counsel for the parties have met and conferred and, having previously discussed settlement, do not believe there is a prospect for settlement at this time. However, the parties will promptly notify the Court if any settlement in principle is reached as to any Defendant.”
Rumors of a potential settlement gained momentum due in part to attorney Jeremy Hogan. Saying that Ripple could seek one out of court. Additionally, Ripple CEO Brad Garlinghouse said in a Twitter thread just last month that Ripple had tried to settle with the SEC. So that the “XRP community can continue innovating, consumers are protected and orderly markets are preserved.”
Prior Ripple SEC Discussions Have Only Been With Previous Administration
The letter also notes that settlement discussions to date have been only with the previous administration. “Principally” with department director Jay Clayton who has since left the department in late December. SEC Chairman-designate Gary Gensler is still awaiting an inauguration date.
Along with this, the letter also revealed that defendants Garlinghouse and Chris Larsen notified the SEC in a letter dated January 27, 2021. That they intended to seek dismissal of the claims against the Individual Defendants. As such, the SEC will now file a First Amended Complaint by February 19, 2021. Within 21 days of Ripple’s response, to attempt to narrow any disputes over the sufficiency of the allegations.
Among other revelations in the document, both parties agreed to August 16 as the final deadline for the discovery phase. After which, the SEC and Ripple Labs will keep open a period of 120 days after the court’s decision to file additional motions.
The pretrial conference remains set for February 22.