Ripple vs. SEC: Kraken’s Legal Move Complicates Settlement Prospects

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The case that Ripple Labs is fighting against the Securities and Exchange Commission (SEC) has taken a unique turn and this new position makes it difficult to negotiate a settlement is what XRP lawyer Bill Morgan says. Kraken, one of the major exchanges in the industry, filed a motion to quash the SEC complaint against them, bringing the principal points from the litigation of Ripple to their defense tactic.

The short-term reconciliation may be a difficult task says Bill Morgan’s assessment 

As Morgan underlines, the recent legal move by Kraken could be a decisive factor for the development of the future of the Ripple vs SEC case. Morgan stresses the fact that Kraken doesn’t want to represent a missing link in the relationship between issuers and buyers, an idea that Judge Torres acknowledged.

“The manner in which Kraken uses the finding of Judge Torres on programmatic sales in the summary judgment decision in its own motion to dismiss shows why the SEC will be strongly motivated to appeal Judge Torres’ decision. It is why a settlement of the SEC v Ripple case seems so improbable at the moment.”

According to Morgan, the SEC is highly motivated to challenge the judge’s ruling, which is mainly due to Kraken’s defense strategy. From the Court’s perspective based on Judge Torres’ rulings, it puts more obstacles on the SEC’s way of trying to settle because it brings into question whether the issuer would make a profit on the investor’s efforts.

While the XRP community nervously awaits SEC’s next move, the prospects of a settlement are still far from certain. Kraken’s current defense strategy has added a different dimension to the ongoing legal battle.

As the Ripple versus SEC case drags on, the crypto community is thoughtful with XRP attorney Bill Morgan’s doubtful conjecture concerning the outcome of a settlement. 

Kraken’s strategic defense against the SEC proves beyond a shadow of a doubt how complex the regulatory compliance of the emerging crypto world is, with the legal fight still ahead. While there is no answer as to when the case might settle, obedient users eagerly wait for further developments.