Ripple Lawsuit: Attorney Predicts No Settlement with SEC

John Deaton

John Deaton, an attorney in the XRP lawsuit, asserts that a settlement between the SEC and Ripple is unlikely. Deaton’s belief is rooted in the broader context of the SEC, led by Chair Gary Gensler, engaging in a regulatory conflict with various crypto platforms. 

The attorney characterises this situation as warfare against the crypto industry. He highlighted the SEC’s aggressive stance under Gensler’s leadership. This perspective shapes Deaton’s belief that the SEC and Ripple will unlikely pursue a settlement in the ongoing legal proceedings.

Deaton: SEC’s Crypto War, Unlikely Ripple Settlement

Deaton likened the conflict between the US SEC and crypto entities to a war. He referenced Senator Elizabeth Warren’s legislative proposal. Accordingly, he highlighted its focus on alleged cryptocurrency misuse in illicit activities such as money laundering and drug trafficking.

In a podcast, Deaton made a statement. He said that the SEC would face criticism if it settled the XRP lawsuit and enforced regulations on other cryptocurrencies.

“We are in a war. Elizabeth Warren just introduced the bill. It bans Bitcoin in the United States.”

However, Deaton suggested that a settlement between SEC and Ripple might occur if Coinbase dismisses or partially wins its motion. In June 2023, the SEC accused Coinbase of operating an unregistered securities exchange. It alleged the facilitation of trades involving crypto assets considered securities. 

Coinbase countered with a motion to dismiss. They argued that the assets in question do not qualify as securities and that the SEC lacks jurisdiction over the crypto market.

Attorney Deaton on Ripple’s XRP Sales

The attorney made some remarks regarding the legal battle surrounding Ripple’s institutional sale of XRP tokens. He referred to a US Supreme Court case, Morrison vs. SEC, which established that the SEC’s jurisdiction is limited to the United States. 

According to Deaton, this could protect most of Ripple’s token sales outside the US, with only a small portion involving US institutional investors. Additionally, Deaton highlighted a favorable ruling for Ripple in the July 2023 Summary Judgment, explicitly concerning the token sale to retail customers.

Read Also: Ripple Strategic Move: Unlocking 1B XRP as Escrow Balance Dips Below 40B 

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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