Attorney John Deaton Explains Possible SEC Settlement with Ripple
According to attorney John Deaton, who is representing XRP token holders in the SEC lawsuit against Ripple, there are certain circumstances under which the regulatory agency might settle with the company. In July 2023, US Judge Analisa Torres ruled that XRP is not a security on its own, which was a partial defeat for the SEC.
SEC Will Only Settle if Other Crypto Lawsuits Are Not Affected
In a Twitter space conversation, Deaton explained that the SEC would only consider a settlement if it doesn’t impact other ongoing crypto lawsuits, such as the one against Coinbase. Additionally, the negotiations for a settlement would involve the sale of XRP to institutional customers, which Judge Torres deemed as unregistered securities offerings.
A Ripple Settlement Could Impact the Coinbase Vs SEC Case
If a settlement is reached with Ripple, it would mean that the SEC agrees to recognize XRP as not being a security. This decision would have implications for the Coinbase Vs SEC lawsuit. In June 2023, the SEC accused Coinbase of operating as an unregistered national securities exchange and charged them for failing to register their crypto asset staking program.
Ripple CEO Stands Firm Against SEC
Ripple CEO Brad Garlinghouse recently stated during an event that there is no need to submit to the demands of the SEC when it comes to dealing with the crypto ecosystem. He referred to Chair Gary Gensler’s defeat in the Summary Judgment ruling and expressed confidence in Ripple’s position, stating that “everything the SEC cares about, they lost.”
Hot Take: Ripple and SEC Settlement Possibility Hinges on Other Crypto Lawsuits
The possibility of a settlement between Ripple and the SEC depends on whether it would impact other ongoing crypto lawsuits, such as the case against Coinbase. If a settlement is reached, it could have significant implications for the status of XRP and its classification as a security. Ripple’s CEO remains confident in their position and believes that the SEC’s arguments have been undermined. It remains to be seen how these legal battles will unfold and what impact they will have on the broader crypto industry.
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