Attorney Believes SEC Won’t Settle with Ripple
John Deaton, the attorney representing XRP token holders in the lawsuit against Ripple and the US Securities and Exchange Commission (SEC), predicts that a settlement is unlikely. Deaton argues that under Chair Gary Gensler’s leadership, the SEC is taking an aggressive stance against crypto platforms, making a settlement unfavorable for them. He also highlights US Senator Elizabeth Warren’s bill aimed at cracking down on illegal activities involving cryptocurrencies. Deaton suggests that if the SEC were to settle in the XRP case but later enforce regulations on other cryptocurrencies, it would undermine their position.
Comparing SEC’s Actions to a War
Deaton likens the SEC’s actions against crypto companies to a war. He points out Senator Elizabeth Warren’s bill as evidence of this ongoing battle. In a podcast interview, Deaton states that settling in the XRP lawsuit would put the SEC in a weak position if they intend to regulate other cryptocurrencies more strictly.
Coinbase Motion to Dismiss Could Lead to Settlement
The only scenario where Deaton sees a possible settlement is if Coinbase succeeds in its motion to dismiss or partially wins it. The SEC has accused Coinbase of operating an unregistered securities exchange and facilitating the trade of crypto assets considered securities. Coinbase argues that these assets do not qualify as securities and that the SEC lacks jurisdiction over the crypto market. If Coinbase’s motion is successful, it could impact the outcome of the XRP lawsuit and potentially lead to a settlement between Ripple and the SEC.
Ripple Lawsuit and Institutional Sales
Regarding the Ripple lawsuit related to institutional sales of XRP tokens, Deaton references a US Supreme Court case that determined the SEC’s jurisdiction is limited to the United States. This ruling could protect the majority of Ripple’s token sales conducted outside the US, excluding only a small portion sold to US institutional investors. In the recent Summary Judgment, judge Analisa Torres ruled in favor of Ripple regarding token sales to retail customers.
Hot Take: SEC’s Unlikely Settlement with Ripple
Based on attorney John Deaton’s analysis, it appears highly unlikely that the US Securities and Exchange Commission (SEC) will settle its lawsuit against Ripple. Deaton argues that the SEC’s current aggressive stance against crypto platforms, coupled with potential future regulations on other cryptocurrencies, would weaken their position if they were to settle with Ripple. The outcome of Coinbase’s motion to dismiss could also play a role in the possibility of a settlement. Overall, it seems that a resolution between Ripple and the SEC is unlikely unless certain circumstances change significantly.
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