Pro-Ripple Lawyer Expects Lengthy Legal Process in SEC vs. Ripple Case
According to pro-Ripple lawyer John Deaton, the legal battle between the United States Securities Exchange Commission (SEC) and Ripple could last for about a year. Deaton believes that a settlement may only be possible if Coinbase’s motion to dismiss the SEC’s case against it is successful.
Lack of Serious Settlement Talks
In a post on X (formerly Twitter), Deaton mentioned that there have been no serious discussions regarding a settlement between Ripple, its executives, and the SEC. The SEC is seeking a $770 million penalty, but Deaton suggests that the penalty phase is a complex process involving various legal procedures such as depositions, document requests, and financial record examination.
Reducing the Penalty
Deaton believes that Ripple might aim to reduce the $770 million penalty by excluding on-demand liquidity (ODL) transactions and cutting down on additional expenses. He cited the LBRY case as an example where the SEC initially sought $23 million but eventually settled for a $130,000 fine after eight months of litigation.
Potential Impact of Coinbase’s Case
Deaton connected Ripple’s case outcome with Coinbase’s lawsuit against the SEC. If Coinbase succeeds in its motion to dismiss, it may change the SEC’s stance on cryptocurrencies and potentially lead to a settlement with Ripple. However, if Coinbase’s motion fails, Deaton does not foresee any possibility of a settlement.
Timeline and Legal Costs
Deaton stated that he does not expect a final judgment from Judge Torres until late summer at the earliest. He also mentioned that it could take a full year before an appeal is filed in this case. Meanwhile, Ripple is expected to face significant legal expenses as it tries to reduce the $770 million penalty.
Hot Take: Lengthy Legal Battle Expected in SEC vs. Ripple Case
Pro-Ripple lawyer John Deaton predicts that the legal process in the SEC vs. Ripple case could last for about a year. He highlights the lack of serious settlement talks between Ripple, its executives, and the SEC, with the SEC seeking a $770 million penalty. Deaton suggests that Ripple might aim to reduce the penalty by excluding certain transactions and cutting down on additional expenses. The outcome of Coinbase’s lawsuit against the SEC may also impact Ripple’s case, potentially leading to a settlement if Coinbase’s motion to dismiss is successful. However, if Coinbase’s motion fails, Deaton does not expect a settlement. The final judgment is not expected until late summer at the earliest, and Ripple is likely to face significant legal costs during this period.
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