- John Deaton, pro-crypto lawyer, anticipates SEC might be pushed into a settlement with Ripple.
- A Ripple settlement could have far-reaching implications for other crypto-related cases, including Coinbase.
Unraveling the SEC-Ripple Legal Drama
In the constantly evolving world of cryptocurrencies, the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) has captured significant attention. John Deaton, a renowned crypto-focused attorney, recently shed light on the ongoing legal skirmish, sharing insights that hint at an unexpected twist in this legal narrative.
During a recent interaction on X (formerly known as Twitter), Deaton responded to an assertion suggesting that the SEC might be contemplating a settlement with Ripple, but hesitated due to its ongoing lawsuits with other crypto organizations. Contrary to this, Deaton articulated a strong belief that the SEC, especially under its current leadership, isn’t yet in a position to consider a settlement. Instead, he postulated, the regulatory body might eventually find itself compelled towards negotiations.
Reflecting on the SEC’s approach, Deaton described the commission’s leadership as “arrogant”. He highlighted their probable underestimation of Ripple executives, Brad Garlinghouse and Chris Larsen, assuming they wouldn’t contest the filed lawsuits. This miscalculation, combined with the unexpected influence of “75,000 XRP holders” on the legal proceedings, likely took the SEC off guard.
Implications of a Potential Ripple Settlement
A settlement between Ripple and the SEC wouldn’t just conclude this particular case, but could set precedents impacting other crypto-related litigations. Deaton posits that the terms of such a settlement would be pivotal. Ripple would likely insist on the SEC recognizing that secondary market XRP sales aren’t securities transactions. Furthermore, Ripple would want acknowledgment that its On-Demand Liquidity (ODL) platform and its XRP transfers don’t equate to securities transactions.
Such conditions, if accepted by the SEC, would directly influence the regulator’s lawsuit against Coinbase. Coinbase could assert its status as a ‘secondary market,’ which implies it isn’t facilitating securities transactions. This distinction could dismantle the primary arguments that the SEC has leveraged against the crypto exchange.
John Deaton anticipates that the ongoing legal battles involving Ripple and Coinbase could extend into the following year. The final verdicts in these cases might usher in much-needed regulatory clarity for the crypto realm. Such clear guidelines would be instrumental in unlocking the immense potential of blockchain technology and crypto assets within the US market.
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