The SEC Demands $770 Million to Settle XRP Lawsuit, Says Lawyer
The lawyer representing XRP holders in the lawsuit against the U.S. Securities and Exchange Commission (SEC) claims that the regulatory body is seeking a settlement of $770 million. Attorney John Deaton explains that the SEC wants this substantial sum to resolve its lawsuit against Ripple Labs, which accuses the company of selling unregistered securities.
Deaton clarifies that the penalty phase of the case requires additional legal procedures, such as depositions, interrogatories, and document requests. Ripple aims to reduce the $770 million demanded by excluding certain transactions and reducing expenses.
Ripple’s Settlement Depends on Coinbase’s Motion to Dismiss
Deaton further reveals that Ripple’s settlement with the SEC hinges on Coinbase’s motion to dismiss. If Coinbase wins its motion, Deaton believes that the SEC will be forced to shift its anti-crypto agenda and negotiate a possible settlement with Ripple. However, if Coinbase loses its motion, Deaton predicts no settlement.
Despite this uncertainty, Deaton asserts that Ripple will make every effort to reduce the $770 million demanded by the SEC, expressing confidence in the crypto firm’s success.
Recent Developments in the XRP Lawsuit
In recent developments, the judge ruled that retail sales of XRP do not qualify as securities and denied the SEC’s motion to appeal this ruling. Additionally, last week, the SEC dropped aiding and abetting charges against Ripple Labs executives, causing a spike in XRP’s price.
Currently trading at $0.54, XRP has experienced a 2.5% dip in the last 24 hours.
Hot Take: SEC Demands Massive Settlement Amount from Ripple in XRP Lawsuit
The U.S. Securities and Exchange Commission (SEC) is reportedly seeking a settlement of $770 million from Ripple Labs in the ongoing lawsuit. This significant amount, if agreed upon, would resolve the SEC’s accusations against Ripple for selling unregistered securities. The penalty phase of the case involves extensive legal procedures, and Ripple aims to reduce the demanded amount by excluding certain transactions and cutting expenses.
The outcome of Coinbase’s motion to dismiss will play a crucial role in determining whether a settlement is reached. If Coinbase wins its motion, it could force the SEC to reconsider its stance on cryptocurrencies and potentially negotiate with Ripple. On the other hand, if Coinbase loses, a settlement seems unlikely.
Despite the uncertainty, Ripple is determined to minimize the $770 million demanded by the SEC. Recent developments, including favorable rulings and dropped charges, have provided some optimism for Ripple and its supporters.
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