Former SEC attorney John Reed Stark commented that a settlement in the Ripple lawsuit is unlikely, as SEC Chair Gary Gensler perceives the partial win in the case as significant. Specifically, the court ruled that XRP's institutional sales violated securities laws, allowing the SEC to pursue penalties related to this aspect of the case. This stance strengthens Gensler's resolve to avoid settling, despite Ripple's victory in establishing that programmatic sales of XRP did not constitute securities.
Further complicating the situation, ongoing investigations by the Office of Inspector General into potential conflicts of interest involving former SEC officials, such as William Hinman, could influence the case. If these investigations reveal misconduct, it might increase pressure on the SEC to settle. However, at this stage, Gensler's position makes a resolution unlikely in the near term.
The legal developments continue to weigh on XRP's price action, but the case remains a pivotal factor for the cryptocurrency market's regulatory landscape.