SNEAK PEEK
- Judge Netburn suggests a potential Ripple-SEC settlement conference.
- Ripple gains a partial victory, stirring mixed responses.
- SEC Chair Gensler exhibits mixed reactions to the recent judgment.
Amid a flurry of events surrounding the Ripple-SEC lawsuit, Judge Sarah Netburn recently issued a new directive. Based on sources, she ordered Ripple and the SEC to propose three mutually agreeable dates for a potential settlement conference. However, she stipulates that this should occur if both parties believe such a meeting would be fruitful.
?NEW: Judge Sarah Netburn orders both @Ripple and the @SECGov to agree on 3 mutually convenient dates to schedule a settlement conference, “if they believe it to be productive at this time.”
Also recommends scheduling 6-8 weeks beforehand due to the court’s busy schedule. pic.twitter.com/zyU4Ku2OOu
— Eleanor Terrett (@EleanorTerrett) July 17, 2023
In addition to her primary directive, Judge Netburn recommended setting up the settlement conference with six to eight weeks lead time. This foresight is crucial given the court’s heavy workload.
This legal milestone follows Ripple’s partial triumph against the SEC last week. The court ruled that Ripple’s institutional sales of tokens indeed violated federal securities laws. Nonetheless, in a significant move, it also determined that the exchange and programmatic sales did not qualify as the sale of securities.
The rationale behind this decision centered on the SEC’s failure to convincingly demonstrate that speculative investors maintained “a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”
Consequently, this ruling drew mixed responses. Gary Gensler, Chair of the SEC, expressed his satisfaction regarding the institutional sales aspect of the judgment. Nevertheless, he also voiced his disappointment over the decision on retail investors.
“We’re pleased from that decision recognizing the importance of protecting investors on the institutional investors. While disappointed on what they said about retail investors, we’re still looking at it and assessing that opinion.” Gensler stated at a National Press Club event in Washington, DC.
In conclusion, the SEC’s reaction underscores the complexity of the Ripple vs. SEC case, with far-reaching implications for institutional and retail investors. Moreover, if agreed upon by both parties, the upcoming settlement conference could potentially bring this prolonged battle to a much-anticipated end.