Marc Fagel warns against excessive optimism over a potential Ripple settlement.
Ripple CEO and CLO remain optimistic about a swift resolution.
XRP trades at $0.598, reflecting a 7.53% weekly increase despite uncertainties.
Former Securities and Exchange Commission (SEC) lawyer Marc Fagel has urged caution among market participants regarding excessive optimism surrounding a potential settlement in the ongoing legal battle between the SEC and Ripple Labs.
The SEC recently rescheduled a closed meeting, sparking renewed hope within the XRP community for a potential settlement. However, Fagel has tempered expectations, citing a lack of concrete evidence to support such an outlook.
The lawyer explained that resolving a complex case like Ripple’s is unlikely at this stage, especially during a closed meeting. He noted:
“If the enforcement staff had negotiated a settlement with Ripple, they would have notified the court to prevent the issuance of the remedies ruling while awaiting SEC approval,”
The SEC’s case against Ripple, which began in 2020, entered the trial phase in April 2024. The XRP community eagerly anticipates the conclusion of this closely watched legal saga. In its filing, the agency alleges that XRP is an unregistered security, an assertion Ripple has consistently refuted.
Although the initial cancellation of the closed meeting was disappointing, anticipation has grown since it was rescheduled for July 25. Some X (formerly Twitter) users speculate that a settlement may be reached. The SEC is expected to discuss matters including “Institution and settlement of administrative proceedings” and “Resolution of litigation claims.”
Market experts and commentators had previously suggested a potential settlement, particularly after the SEC’s decision to hold a closed meeting. Ripple CEO Brad Garlinghouse, in a recent Bloomberg interview, expressed optimism about a swift resolution. Ripple CLO Stuart Alderoty echoed this sentiment while commemorating the anniversary of Judge Analisa Torres’s significant ruling.
At press time, XRP trades at $0.598 during press time, reflecting a 7.53% weekly increase per data.
Despite these hopeful signals, Fagel’s comments cast doubt on the likelihood of a settlement stemming from the SEC’s closed meeting. He emphasized that the next few weeks will be crucial in determining the final judgment in the remedies phase.
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