The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has been a topic of great interest and speculation in the cryptocurrency community. Pro-XRP lawyer John Deaton recently shared his views on the case, challenging the popular belief that the two parties are actively seeking a settlement outside of court. According to Deaton, there has not been a single serious conversation regarding a settlement between the SEC and Ripple.
This revelation comes as a surprise to many XRP supporters, especially considering that Judge Torres, who is presiding over the case, has been pushing for a settlement. In fact, the judge recently ordered the two parties to hold a meeting in person to discuss possible settlement deals. However, Deaton believes that the SEC is not interested in a settlement because it is angry, “embarrassed, and wants $770M worth of flesh.” This suggests that the SEC has demanded this amount as a penalty to settle the case against Ripple.
Deaton draws a comparison to another case, the SEC vs. LBRY case, where the SEC sought $23 million from the project. After months of legal proceedings, the presiding judge issued a fine of $130,000. Based on this outcome, Deaton predicts that a final judgment from Judge Torres in the SEC vs. Ripple case is unlikely until late summer at the earliest. He even suggests that it could take a full year before an appeal is filed in this case.
Another factor that could influence the outcome of the Ripple case is the SEC vs. Coinbase case. The SEC has accused the popular crypto exchange Coinbase of operating as an unregistered securities exchange. Deaton believes that if Coinbase can win its motion to dismiss, the SEC will be forced to pivot its anti-crypto agenda and potentially work out a settlement with Ripple. On the other hand, if the SEC wins its case against Coinbase, Deaton sees no possibility of a settlement between the SEC and Ripple.
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The oral argument for the Coinbase motion is set for January 17, 2024. However, a ruling could take between 60 to 120 days. Depending on the outcome of this case, it could have a significant impact on the SEC’s stance and approach towards Ripple.
In conclusion, Deaton predicts that Ripple will continue to spend millions on legal fees to try and reduce the $770M penalty sought by the SEC. If Ripple can reach a favorable settlement amount, it may choose to settle the case to save on legal fees and focus on its development and expansion efforts.
It is important to note that the information shared in this article is based on the views and opinions of lawyer John Deaton and should not be considered as financial or legal advice. Readers are advised to conduct their own research and diligence before making any investment or legal decisions related to cryptocurrencies.
