XRP Lawsuit: SEC Can only Settle with Ripple Only in One Condition, Says John Deaton
The post XRP Lawsuit: SEC Can only Settle with Ripple Only in One Condition, Says John Deaton appeared first on Coinpedia Fintech News
Following Ripple’s recent partial legal victory, speculations suggest that a settlement might be the ultimate outcome in the Ripple vs. SEC case. However, according to John Deaton, a prominent lawyer advocating for XRP, reaching a settlement won’t be straightforward for either party. Here’s an explanation of why this could be the case.
John Deaton Debunking SEC’s Settlement Plan with Ripple
In his X post-session, Attorney John Deaton outlined the conditions under which the SEC might consider settling with the company. He emphasized that any potential settlement would have to avoid negatively impacting other crypto-related lawsuits, such as the ongoing case involving U.S.-based crypto exchange Coinbase. Additionally, the negotiations would revolve around XRP sales to institutional clients only, which U.S. Judge Analisa Torres previously deemed unregistered securities offerings.
SEC Settling with Ripple means Losing all Related Cases
A settlement with Ripple would entail the SEC acknowledging XRP as not being a security. This decision, however, could negatively impact the Coinbase vs. SEC lawsuit. In June 2023, it was claimed that Coinbase was functioning as an unregistered national securities exchange, broker, and clearing agency. The agency also pressed charges of grave violations related to its crypto asset staking program.
Ripple Denies Settlement Claims
In response, Ripple CEO Brad Garlinghouse maintained his stance of not bowing to SEC’s demands during the Mainnet 2023 event on September 20, 2023. He highlighted the Summary Judgment ruling that dealt a significant blow to the SEC’s arguments, emphasizing that “everything the SEC cares about, they lost.” This development underscored a shift in the dynamics of the legal battle. However, seeing what Ripple reveals at its proper party will be interesting. An IPO or a Settlement, which they denied so far?
How is the XRP Army Reacting to This?
Overall, John Deaton’s ongoing updates and opinions have given credibility to concerns in the XRP community, which has felt unfairly targeted by the SEC compared to Ethereum. Many have started linking it to Ethereum’s past actions that recently sparked controversy, with some calling it the “Ethereum Free Pass” situation. Influencer Zach Rector suggests Ripple may have a favorable SEC settlement on the horizon, although both parties deny this. At the time of writing, XRP was back in its clear position at $0.50; there is not much improvement in the coin’s market position.
Filed under: Bitcoin - @ September 21, 2023 5:11 am