Ripple Labs Achieved a Major Point in the Extended Court Fight Against the U.S. Securities and Exchange Commission (SEC)

The cryptocurrency market shows strong positive reaction toward rumours about a potential settlement between the parties. XRP token prices have experienced an 8% rise

Ripple Labs is inching closer to resolving its protracted legal dispute with the U.S. Securities and Exchange Commission (SEC). Both parties are now focused on finalizing a settlement agreement, with bilateral appeals being held in abeyance.

This process of reaching a settlement was initiated after both parties signed a general agreement. The agreement aims to determine whether XRP tokens qualify as securities, and it will be a subject of internal review by the SEC. An update on this process is expected by June 9 during the SEC’s approval stage.

This potential settlement will not only bring clarity to the regulatory status of XRP but also serve as a foundational explanation for other crypto assets in the U.S.

The cryptocurrency market has shown a strong positive reaction to recent rumors concerning the parties’ progress in reaching a settlement.

In recent developments, Reginald "Reg" Balcombe Jr., the president and CEO of Unico Whatley Inc., joined the board of directors at bitcoin mining firm Mogo (TSX:MOGO,NYSE:MOGO). Unico Whatley is a Whatley family company, which is a major shareholder in Mogo.

After the news broke about the potential settlement between Ripple and the SEC, shares of Mogo experienced an increase of 0.7% to trade at $5.76 at 12:18 ET on Friday. Since the beginning of the year, Mogo’s shares have experienced a surge of more than 240%. The company is planning to sell its bitcoin holdings to fund its expansion plans within the rapidly growing cannabis industry.

Earlier this year, Mogo announced its intention to invest $50 million in Unico Whatley to develop a cannabis venture. This investment will be funded by the sale of Mogo’s bitcoin holdings, which are valued at about $76 million at current prices.

Mogo’s pivot towards cannabis comes at a time when the company is facing difficulties in its core business of providing financial technology products. Despite securing a license to operate a marijuana dispensary in California in 2021, Mogo has yet to open the dispensary and prefers to invest in a cannabis company that is already generating revenue.

Unico Whatley is a private investment firm that focuses on making long-term equity investments in a diverse range of industries. The family office, established in 1988 by Reginald Balcombe Sr., is a significant shareholder in Mogo.

Despite rumors of a potential settlement between Ripple and the SEC, a spokesperson for the SEC declined to comment on the matter.