Ripple Vs SEC Lawsuit: Deaton Predicts Settlement Despite Victory
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As the highly anticipated summary judgment date of the Ripple vs. SEC lawsuit approaches, rumors of a potential settlement are causing a stir among XRP community members. The case has significant implications for the cryptocurrency industry, making it a hot topic in the crypto world.
The Latest Development
CryptoLaw founder attorney John E. Deaton has added fuel to the fire with a recent legal analysis. His statement that Ripple will settle only if it wins big against SEC has left many seeking clarifications and wondering if the case may be resolved out of court.
This is not how a settlement happens. First, I believe the only time a settlement occurs in this case is AFTER a ruling by Judge Torres and that happens only if Ripple gets a big victory so Gensler could save face and get a political win via settlement. Sorry not going to happen. https://t.co/k1eEIMtK8f
— John E Deaton (@JohnEDeaton1) May 1, 2023
Deaton’s Clarification
Deaton clarified that his earlier analysis did not imply that Ripple would agree to the same settlement terms as two years ago. He further elaborated on his previous tweets, posing rhetorical questions to shed more light on the matter.
Firstly, Deaton asked whether crypto exchanges such as Coinbase and Kraken would immediately relist XRP or wait for the SEC’s appeal decision in case the verdict favors Ripple. Secondly, he questioned whether Bank of America would be comfortable with Judge Torres’ verdict or wait to see if the SEC appeals and the decision is overturned.
Quite a few people ask why would Ripple settle if they won. First, I didn’t say Ripple would agree to the same terms of a settlement they would’ve agreed to 2 years ago. It all depends on the ruling itself. Does Coinbase and Kraken immediately relist or wait for an appeal? https://t.co/sCx24acPR4
— John E Deaton (@JohnEDeaton1) May 2, 2023
Does Bank of America, a Ripple partner feel comfortable with the decision or wait to see if Judge Torres gets overturned if the SEC appeals her ruling.
Remember, the SEC can file a notice of appeal and withdraw it later.
— John E Deaton (@JohnEDeaton1) May 2, 2023
The Potential Settlement Offer
Deaton noted that if the SEC were to offer Ripple a statement declaring that all future sales of XRP are not securities and agree not to appeal in exchange for a payment of $50 million, the immediate return of liquidity to the U.S. would make it an easy decision for Brad Garlinghouse, the CEO of Ripple.
However, Deaton stated that the situation would be different if Judge Torres rules in Ripple’s favor, as it would result in the return of liquidity to the U.S. and businesses no longer need to worry about SEC scrutiny when using XRP.
As the Ripple vs. SEC lawsuit unfolds, the potential for a settlement remains on the table. With the case having significant implications for the crypto industry, all eyes are on Ripple and the SEC as the drama continues, with the community watching with bated breath.
Filed under: Bitcoin - @ May 2, 2023 10:30 am