In a surprising development, the United States Securities and Exchange Commission (SEC) recently dropped its case against Ripple executives Brad Garlinghouse and Christian Larsen. This decision means that the trial scheduled for April 2024 will no longer take place, but the SEC will still continue pursuing other aspects of the case against Ripple. The dismissal of the charges has sparked a range of reactions from the crypto world, particularly from the XRP community.
One prominent figure offering insights into the ongoing legal battle is John Deaton, a lawyer and well-known supporter of XRP. Responding to crypto trader Ran Neuner’s concerns about the dismissal, Deaton shared his opinion on the potential for an immediate appeal by the SEC. While Deaton agreed that an appeal by the SEC could happen sooner due to the dismissal, he disputed Neuner’s claim that the SEC can appeal immediately. According to Deaton, the penalty phase of the case must occur first, citing the LBRY case as an example. He explained that in the LBRY case, the appeal was filed eight months after the ruling, indicating that an SEC appeal of the Ripple case is not expected before 2024.
Deaton also highlighted the significant amount at stake in the Ripple case. The SEC is seeking $770 million in fines, making negotiations over such a substantial figure likely to take longer than eight months. By comparison, the LBRY case initially involved $23 million in fines, but it eventually settled with a $130,000 penalty after eight months of negotiation. These differences further support the notion that an SEC appeal in the Ripple case may not occur in the immediate future.
Despite dismissing the case against Garlinghouse and Larsen, it is clear that the SEC is not giving up in its lawsuit against Ripple. The financial regulator will continue pursuing other elements of the case, particularly the classification of offers and sales of XRP as an investment scheme. This ongoing pursuit suggests that the SEC is determined to enforce regulations and protect investors in the cryptocurrency industry.
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However, the dismissal of the charges against the Ripple executives has led to speculation about a potential settlement between the SEC and Ripple. This development could provide an opportunity for both parties to reach a resolution outside of the courtroom, avoiding a protracted legal battle. The possibility of a settlement has generated interest and discussion within the crypto community.
Overall, the voluntary dismissal of the case against Ripple executives Brad Garlinghouse and Christian Larsen by the SEC has raised various questions and generated significant attention. While the dismissal implies that the scheduled trial will no longer take place, the SEC’s continued pursuit of other aspects of the case indicates that the legal battle is far from over. The involvement of John Deaton, a prominent advocate for XRP and supporter of Ripple, offers insights into the proceedings and potential timelines for the future. As the crypto world waits for further developments, discussions about a potential settlement and the implications for the industry continue to unfold.
