A Complex Settlement Process
According to pro-XRP legal expert John Deaton, the settlement between the SEC and Ripple is not going to be a straightforward process. Deaton believes that there has been no serious discussion about settlement, as the SEC is seeking a $770 million fine for Ripple’s violation of securities laws. The penalty phase of the case involves various legal procedures, such as depositions, requests for documents, and interrogatories.
Ripple aims to significantly reduce the fine imposed by the SEC. To achieve this, Ripple wants to exclude ODL transactions from the case, which the SEC may argue violated securities laws through institutional sales. Deaton also referred to a similar case involving LBRY, which took eight months of additional litigation before a fine was ordered.
Potential Timeline and Implications
Deaton predicts that a final judgment from Judge Analisa Torres may not come until late summer at the earliest. It could take up to a year before either party can file an appeal in this case. The outcome of Coinbase’s Motion To Dismiss (MTD) could also impact the possibility of a settlement. If Coinbase’s motion is granted, the SEC would need to reevaluate its stance on cryptocurrencies and potentially consider a settlement with Ripple.
If Coinbase loses its MTD, a settlement becomes unlikely. Coinbase argues that the SEC does not have jurisdiction over its activities. The hearing for Coinbase’s oral argument is scheduled for January 17, 2024.
Hot Take: Uncertain Settlement Ahead for Ripple and SEC
The settlement between Ripple and the SEC is expected to be a complex and challenging process. With differing views on the fine amount and potential exclusions from the case, reaching an agreement may take significant time and effort. Moreover, external factors such as Coinbase’s pending Motion To Dismiss could further impact the settlement prospects. As the legal battle continues, Ripple and the SEC face an uncertain path ahead, with a final resolution potentially taking several months or even a year to reach.
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