Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have released a status report on the odds they will reach a settlement as a pre-trial conference approaches.
In a joint letter, the SEC and Ripple say that they appear unlikely to settle the lawsuit anytime soon. The SEC alleges Ripple sold XRP as an unregistered security for years.
“Counsel for the parties have met and conferred and, having previously discussed settlement, do not believe there is a prospect for settlement at this time. However, the parties will promptly notify the Court if any settlement in principle is reached.”
Ripple also notes that previous settlement talks were with members of the SEC who have since departed.
“Defendants agree with the statement, but note that previous settlement discussions took place under a previous administration and were principally with relevant division directors who have since left the SEC.”
Earlier this year, about two weeks after the SEC filed the lawsuit, Ripple CEO Brad Garlinghouse said the blockchain firm tried settling with the regulator.
“Can’t get into specifics, but know we tried – and will continue to try with the new administration – to resolve this in a way so the XRP community can continue innovating, consumers are protected and orderly markets are preserved.”
Last month, blockchain and digital currency lawyer Stephen Palley predicted that the defendants in the SEC lawsuit (Ripple, Garlinghouse, and Ripple executive chairman Chris Larsen) will likely reach a settlement in the long run.
“Ripple’s going to lose. Garlinghouse and Larsen are going to lose… They lose and they probably settle.”
The initial pre-trial conference in the lawsuit will take place on February 22nd.