Speculation is circulating within the cryptocurrency community regarding a possible settlement meeting between Ripple Labs and the US SEC in the midst of the ongoing XRP lawsuit. The speculation gained momentum after Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty were reportedly spotted in New York, sparking rumors of settlement talks.

Settlement Discussion or Alternative Arrangements?

A member of the XRP community, BobaFete, reported seeing Garlinghouse and Alderoty outside a federal courthouse in New York, leading to speculation about a potential settlement negotiation between Ripple and the SEC.

FOX Business reporter and cryptocurrency enthusiast Eleanor Terrett made a reference to a "Settlement Conference" in her recent post on March 29, providing evidence that the upcoming Ripple vs. SEC case hearing is scheduled for April 16, 2024, for the final pretrial conference. However, the document mentioned the possibility of an earlier meeting between the parties to discuss settlement, without specifying a date.

SEC’s Position and Ripple’s Reaction

Meanwhile, the SEC is pushing for a final judgment in the XRP lawsuit, imposing a $2 billion penalty against Ripple for alleged violations of securities laws. In response, Ripple CLO Stuart Alderoty criticized the SEC's unreasonable demand, pointing out inconsistencies and accusing the regulatory agency of making misleading statements.

Alderoty declared that he is prepared to submit a response on behalf of Ripple in April, indicating Ripple's intention to challenge the SEC's allegations. Given this context, the potential settlement meeting introduces a new element of uncertainty to the ongoing legal dispute between Ripple and the SEC related to XRP. XRP is already facing criticism from the community for its underperformance.

Likelihood of Settlement After $2B Penalty

Reaching a mutual agreement is a challenging task for both sides. Nevertheless, the presence of Ripple's top executives in New York and a potential settlement conference suggest that negotiations between the company and the SEC are possible. A settlement could have a significant impact on the XRP lawsuit and the future of Ripple.

The cryptocurrency community is eagerly anticipating further developments in this crucial legal battle. As the April pretrial conference approaches, Ripple and the SEC are either seeking a common resolution, or the lawsuit will proceed to trial, prolonging the uncertainty surrounding XRP's regulatory standing.