Brooks speculates that both Ripple and the SEC will reach a settlement.
The lawsuit between Ripple and the Securities and Exchange Commission (SEC) has been a major topic of discussion in the cryptocurrency industry.
Cryptocurrency enthusiasts, including popular figures in the industry, have weighed into the debate as to whether Ripple offered unregistered securities in the United States.
With the lawsuit expected to end by March 2023, some experts have begun to make their predictions on a possible outcome.
Brian Brooks, the former Binance U.S. CEO and previous Acting Comptroller of the Currency, is the latest to speculate on the possible outcome of the Ripple vs. SEC lawsuit.
In a recent interview, Brooks noted that the court would decide whether Ripple’s 2013 Initial Coin Offering (ICO) is a breach of U.S. securities law.
However, he expects both parties to settle the line to enable investors to continue trading XRP in the United States. According to Brooks, the settlement that may likely happen will border around the distribution of XRP in 2013.
“Here, the most important issue about the XRP is that there is a difference between the way the asset is distributed and the nature of the asset at a given moment and time. And I think the issue is that whatever happened at the original distribution of the XRP tokens ten years ago, whether that was or was not a security, that is what the courts will decide. The question is whether XRP today is security?; the answer is that the SEC itself has said that assets can change their nature with time as they achieve utility and decentralization.
I will just make a quick prediction that there is a settlement that will be done somewhere. The settlement has to do with the distribution of the tokens so that existing token holders can continue to trade them and find value in them in ways that they do,” Brooks quoted.
Wondering what Michael Barr thinks about #XRP ? pic.twitter.com/ldvZDv5WjN
— ⭕ RIZ ☀️ (@RizXRP) August 21, 2022
Brook’s Prior Work Experience
Brooks is an American lawyer, technologist, and entrepreneur. He has a vast knowledge of the public and private financial sectors. Brooks served as Acting Comptroller of the Currency from May 29, 2022, to January 14, 2021.
After his time as Acting Comptroller of the Currency, Brooks became the CEO of Binance. the US. However, his tenure did not last as many expected, as he resigned just three months into the job.
“Letting you all know that I have resigned as CEO of Binance US. Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come,” Brooks said in a tweet.
Ripple Lawsuit Linger On
Meanwhile, the Ripple vs. SEC lawsuit has continued to linger, with the blockchain company scoring some major wins.
At the moment, one of the major topics of discussion is William Hinman’s documents. While the SEC is poised to keep the document away from Ripple, the court has ruled on two occasions that the securities regulator should surrender the documents.
However, the SEC does not seem comfortable with the order, which prompted the agency to object to the ruling.
Interestingly, attorney John Deaton, legal representative of over 71,000 XRP holders in the lawsuit, noted that the SEC would rather settle with Ripple than surrender the Hinman documents.