Settlement Unlikely in Ripple vs. SEC Case, Says Lawyer
According to prominent lawyer John Deaton, a settlement in the Ripple vs. SEC case is unlikely for both parties involved. Deaton outlined the conditions under which the SEC might consider settling with Ripple, which include avoiding negative impacts on other crypto-related lawsuits and focusing on XRP sales to institutional clients only. However, reaching a settlement could affect the ongoing Coinbase vs. SEC lawsuit, where Coinbase is accused of functioning as an unregistered national securities exchange.
SEC Settling with Ripple Could Lead to Losing Other Cases
If the SEC settles with Ripple and acknowledges that XRP is not a security, it could negatively impact the Coinbase case. In June 2023, Coinbase was accused of various violations related to its crypto asset staking program and operating as an unregistered exchange, broker, and clearing agency.
Ripple CEO Denies Settlement Claims
Ripple CEO Brad Garlinghouse has maintained his stance of not bowing to the SEC’s demands during a recent event. He emphasized the Summary Judgment ruling that favored Ripple and dealt a significant blow to the SEC’s arguments. The dynamics of the legal battle have shifted, but whether Ripple will reveal an IPO or settle remains uncertain.
Reaction from the XRP Community
The XRP community has expressed concerns about being unfairly targeted by the SEC compared to Ethereum. Many have drawn comparisons to Ethereum’s past actions and controversy, referring to it as the “Ethereum Free Pass” situation. Influencer Zach Rector suggests that Ripple may have a favorable settlement with the SEC in the future, although both parties deny this. Currently, XRP’s market position remains relatively unchanged at $0.50.
Hot Take: Settlement Unlikely to Happen in Ripple vs. SEC Case
Based on the analysis of lawyer John Deaton, it seems unlikely that a settlement will be reached between Ripple and the SEC. The potential negative impact on other crypto-related lawsuits and the ongoing Coinbase case make it challenging for both parties to find common ground. Ripple’s CEO has also maintained a strong stance against settling with the SEC. This legal battle has sparked discussions within the XRP community, raising concerns about unfair treatment compared to Ethereum. The market position of XRP remains stagnant, awaiting further developments in the case.
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