Pro-XRP lawyer sees 40% chance of Ripple-SEC settlement after ruling

The legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues, with the regulator filing a motion for remedies and a final ruling that includes a request Ripple pays $2 billion fine.

Pro-XRP attorney and HODL Law founder Fred Rispoli provided an in-depth analysis of the SEC’s motion through a series of comments on X (formerly Twitter). His perspective gives us an inside look at the potential outcomes and strategies at play.

He noted: “The #XRP community SEC’s motion for judgment has been publicly filed. In short: The SEC is following the playbook I outlined two months ago.” This shows the predictability of the SEC’s actions while also highlighting Understand the serious challenges faced by Ripple.

SEC Puts Ripple in Trouble

Rispoli’s analysis highlighted several key aspects of the SEC filing, specifically highlighting the steep discounts Ripple offered in XRP sales to certain institutional buyers. The SEC believes that Ripple sold XRP to two groups of institutions, but provided one group of institutions with a significant discount on the price of XRP, while the other group did not receive the same treatment.

SEC stated that this behavior will not only distort the interests of certain institutional sales investors, but may also put retail investors into a disadvantageous position. The lawyer applauded the agency's strategy.

Rispoli pointed out that the SEC has begun to realize that the actual losses suffered by investors must be clearly demonstrated. Ripple has pointed out that the SEC’s motion contained misstatements. We hope Ripple is correct, as the SEC’s characterization could cast a negative light on Ripple and provide basis for those who believe XRP is undervalued, namely that Ripple is offering deep discounts in XRP sales.

He expressed concern about the disclosure, stating: “If the discount is too large, institutional buyers (such as GSR) may obtain extremely competitive discounts, acquire XRP in large quantities, and continue to sell at high profits. ." He is worried that Ripple's approach may lead to an imbalance in the investment market.

Additionally, Rispoli revealed the SEC’s characterization of Ripple’s business practices, specifically the company’s continued sales of XRP as its primary source of revenue despite heightened legal scrutiny. He explained that "the SEC asserts that financial discovery it received through a court order shows that this is undoubtedly a major source of revenue for Ripple," which raises questions about Ripple's reliance on these sales in the ongoing litigation. Key insights.

At the same time, the document also revealed that Ripple is still signing contracts with institutional buyers. Since the XRP lawsuit began in December 2020, the company has signed 80 contracts.

Pro-XRP Lawyer predicts two possible outcomes

The categorization of Ripple’s On-Demand Liquidity (ODL) transactions represents another key aspect of Rispoli’s analysis. Whether these transactions constitute illegal sales or legal determinations as permitted by law is an important factor that may affect Ripple's operational freedom.

“The stakes are very high here,” Rispoli asserted, adding: “We have to hope that Ripple has sufficiently changed its business practices to adapt to the Torres ruling.”

The potential consequences of the SEC's motion are far-reaching, and Rispoli speculated on the possibility of a settlement. “This motion has significant consequences,” he assessed, with two possible outcomes:

The first is that the court awards a lower amount and is favorable to Ripple, which may lead to a 40% probability of a final settlement. Another possibility is that the court rules in favor of Ripple but against it in other respects, potentially leading to a higher likelihood of the case being appealed to the Second Circuit.

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