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XRP Lawyer Spotlights Major Obstacle If Agency Accepts Deal

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In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), XRP enthusiasts have branded the potential settlement as a “showdown.” This label has sparked a heated response from pro-XRP lawyer Bill Morgan, who criticized the notion. Moreover, he also highlighted that the Ripple SEC settlement could catalyze a major obstacle for the firm.

Ripple SEC Settlement To Impact Crypto Firm’s Future Operations

Morgan ditched the notion of a “showdown” on the XRP lawsuit settlement. In addition, he also ditched the likelyhood of a settlement soon, which contradicts Ripple CEO Brad Garlinghouse’s recent stance. The lawyer wrote on X, “This is unlikely to happen but if it does it is a compromise not a big win. It means both parties give up something.”

Morgan’s stance highlights the complexities and misconceptions surrounding the potential resolution of the high-profile case. The SEC’s lawsuit against Ripple, initiated in December 2020, alleged that the company raised over $1.3 billion through sales of its XRP token.

The SEC classified the token as an unregistered security at the time. However, a 2024 court ruling by Judge Analisa Torres nuanced this interpretation by stating that certain “programmatic sales” of XRP did not constitute securities transactions.

Meanwhile, a user user challenged the idea of a settlement without significant concessions from the SEC. They argued, “I don’t see a point in Ripple settling unless the SEC forever guarantees to appeal nothing after Judge Torres’s final ruling.”

Morgan responded by clarifying the nature of settlements, noting, “Settlements generally end matters in dispute including appeal rights in the current proceedings.” However, the lawyer spotlighted another obstacle that Ripple might face after a settlement.

Morgan noted, “The more likely difficulty is other Ripple XRP sales since December 2020 and future Ripple sales of XRP.” Former SEC lawyer Marc Fagel echoed Morgan’s skepticism about the Ripple SEC settlement. He also cited the financial demands made by the SEC.

Also Read: Donald Trump Bags $4M In BTC, ETH and XRP From Crypto Heavyweights

Ex-SEC Weighs In On Settlement & Penalty

Fagel noted, “A settlement would mean neither party can appeal (which is probably why it won’t settle).” He also shed light on how the American watchdog is unlikely to receive the hefty penalty levied on the blockchain payments firm. He noted, “The SEC requested a $1B penalty (plus about $1B in disgorgement + interest). That is the only SEC position before the court. (They won’t get it; but the numbers have not changed.)”

Furthermore, Fagel dismissed speculation of the Ripple SEC settlement during the SEC closed-door meeting on July 25. He stated, “I’ve tried to patiently explain to people what closed meetings are, how they work, and why a settlement (if it existed) likely wouldn’t even be calendared at one (as presumably the sole person here who used to attend them). Some appreciate the info; most are just into clickbait.”

What Makes The Situation More Complex?

Earlier, Ripple’s Chief Legal Officer Stuart Alderoty referenced the court’s decision in the Aron Govil case. He emphasizing that if a buyer suffers no financial loss, the SEC is not entitled to disgorgement from the seller. Furthermore, Morgan pointed out that this decision could influence the Ripple vs. SEC case.

“If institutional investors suffered no pecuniary harm, the fact that the Second Circuit Court of Appeals did not reconsider Govil is a good thing for Ripple,” Morgan wrote on X. In March 2024, the SEC had argued that institutional investors suffered $480 million in damages due to Ripple’s alleged discrimination during XRP On-Demand Liquidity (ODL) sales.

The agency also contended that had Ripple registered the sales of XRP, the company would have been obligated to disclose discounts offered to favored institutional investors. Hence, in case of the Ripple SEC settlement, the agency could limit the future sales of XRP by leveraging this argument. In addition, the crypto firm is mulling an IPO in the U.S., however, the regulatory uncertainties have excarberated difficulties.

Also Read: BlackRock Crypto Chief Denies Chances Of Solana, XRP ETF Approval

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Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Acknowledges Fidelity’s Filing for Solana ETF

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The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the filing for Fidelity’s spot Solana (SOL) Exchange-Traded Fund (ETF).

This marks a key development in the financial industry, as Fidelity seeks to list its Solana ETF on the Cboe BZX Exchange. The acknowledgment comes after Fidelity submitted a proposed rule change, paving the way for the potential approval of the product.

Fidelity’s Spot Solana ETF Proposal

The SEC’s acknowledgment follows Fidelity’s filing to list and trade shares of the Fidelity Solana Fund under the Cboe BZX Exchange. The proposed rule change, initially submitted on March 25, was later amended on April 1, 2025, to clarify certain points and add additional details.

The amended proposal aims to list the Solana ETF under BZX Rule, which pertains to commodity-based trust shares. According to the Cboe BZX Exchange, Fidelity plans to register the shares with the SEC through a registration statement on Form S-1.

Fidelity’s experience with crypto ETFs, having launched the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH), has prepared it for this new initiative. FBTC has drawn substantial interest, accumulating nearly $17 billion in assets, while FETH currently manages around $975 million.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US Senate Banking Committee Approves Paul Atkins Nomination For SEC Chair Role

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The U.S. Senate Banking Committee has voted to approve Paul Atkins’ nomination for the role of Chair of the Securities and Exchange Commission (SEC). The vote, which took place on Thursday, passed with a narrow margin of 13-11, along party lines.

Paul Atkins, nominated by President Donald Trump, now moves one step closer to taking over the top regulatory position at the US SEC.

Senate Banking Committee Approves Paul Atkins Nomination

Paul Atkins’ nomination for SEC Chair has received approval despite sharp opposition from Democratic members of the Senate Banking Committee. The vote was entirely split, with Republicans supporting Atkins and all Democrats opposing the decision.

This partisan divide highlights the contentious nature of Atkins’ confirmation, which had been under scrutiny for several reasons.

The committee’s approval now clears the path for Atkins to proceed to the full Senate for a final confirmation vote. Given the Republican-controlled Senate, it is widely expected that Atkins will secure the necessary votes to take over the SEC leadership. With Republicans holding a 53-47 majority in the Senate, the confirmation process is anticipated to move forward swiftly.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Kraken Obtains Restricted Dealer Registration in Canada

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Cryptocurrency exchange Kraken has obtained a Restricted Dealer registration in Canada. The registration comes after completing a pre-registration undertaking (PRU) process with Canadian authorities.

The exchange has also announced the appointment of Cynthia Del Pozo as its new General Manager for North America. Del Pozo will oversee Kraken’s growth initiatives in Canada.

Kraken Completes PRU Process In Canada

Kraken’s Restricted Dealer registration marks the completion of a thorough pre-registration undertaking (PRU) process with Canadian regulators. The registration places Kraken under the supervision of the Ontario Securities Commission (OSC). This oversight ensures users have access to secure crypto products within a properly regulated local ecosystem.

According to the Canadian Securities Administrators (CSA), the Restricted Dealer registration is one of eight firm registration types in Canada. This particular classification is used for firms that “do not quite fit under any other category.” It also comes with specific requirements and conditions set by securities regulators.

Kraken’s regulatory achievement comes during a period of change in the Canadian crypto sector. Just months earlier, competitor Gemini exchange announced its departure from the Canadian exchange market by the end of 2024. This was a move that surprised many and raised questions about cryptocurrency regulation clarity in the country.

Kraken Introduces New Canadian GM

Del Pozo has joined Kraken to lead its Canadian operations as the new General Manager for North America. She has nearly 15 years of experience in corporate development, operations, and fintech consulting. Del Pozo will help to guide Kraken’s expansion across Canada during this important phase of crypto’s development in the region.

“Canada is at a turning point for crypto adoption, with a growing number of investors and institutions recognizing digital assets as a vital part of the financial future. I’m thrilled to join Kraken’s mission at this critical moment, and to lead our expansion efforts, ensuring we continue to serve our clients long-term with innovative and compliant products,” said Del Pozo.

In her role, Del Pozo will focus on strengthening Kraken’s regulatory relationships and also scaling the company’s presence throughout North America.

Del Pozo also commented on the registration achievement: “This Restricted Dealer registration is testament to the high bar Kraken has always set for consumer protection, client service, and robust security. We’re excited to continue expanding our world-class investment platform and to deliver innovative products that provide real-world utility to Canadians.”

The Exchange’s Continued Growth In Canada

Over the past two years, the cryptocurrency exchange has shown steady expansion in Canada while working through the PRU process with regulators. During this period, the exchange has doubled its team size and monthly active users.

According to the official blog post figures, the firm now has more than $2 billion CAD in total client assets under custody. Kraken has also increased support for some of the most popular cryptocurrencies. It provides several CAD spot trading pairs that enable Canadians to trade crypto without paying expensive foreign exchange fees.

According to Innovative Research Group’s 2024 Investor Survey, 30% of Canadian investors currently own or have owned cryptocurrencies. Likewise, a KPMG Canada survey discovered that 30% of Canadian institutional investors now have exposure to cryptocurrencies, which means widespread adoption across investor types.

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