The XRP lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC) is nearing its conclusion, with parties racing to tie up loose ends. Digital assets lawyer James Farrell notes that Ripple will pursue an indicative ruling to facilitate its future IPO proceedings. However, internal processes at the SEC may complicate matters for Ripple.
Farrell revealed that Ripple and the SEC are facing several obstacles in reaching a final resolution in the XRP lawsuit. Ripple is actively pursuing a settlement with the SEC and seeking an indicative ruling from Judge Torres. Parties have agreed to a temporary suspension of appeals, signaling a potential break in legal proceedings to facilitate negotiations.
Ripple is expected to make a settlement offer to the SEC and request an indicative ruling from the District Court. Farrell explains that the settlement is a straightforward process for Ripple, but the indicative ruling may pose challenges. Ripple is seeking modifications to allow for private sales of XRP before launching an IPO, which is crucial for the company’s future plans.
The process involves Ripple submitting a settlement offer and a request for an indicative ruling, either jointly or separately to the SEC. If the SEC accepts the settlement, Ripple will still need to seek approval from Judge Torres, with a projected timeline of six months. If the motion to modify the injunction is denied, parties may return to the appellate court, potentially prolonging the legal process.
Following the pause in legal proceedings, an analysis predicts a $2 price floor for XRP, indicating a potential parabolic rally in the future. The outcome of the XRP lawsuit will have significant implications for Ripple Labs and the broader cryptocurrency market. As parties navigate through the final stages of the lawsuit, the resolution will shape the future of XRP and Ripple’s IPO plans.
