Key Insights from a Pro-Ripple Lawyer on the Lengthy Legal Battle with the SEC
A prominent lawyer supporting Ripple, John Deaton, has shared his predictions on the ongoing legal battle between Ripple and the United States Securities Exchange Commission (SEC). Deaton anticipates that the legal process could stretch out for up to a year, highlighting various factors that could lead to a potential settlement. One such factor is Coinbase’s motion to dismiss the SEC’s case against it, which, if successful, may push the SEC towards considering a settlement.
The Lack of Serious Settlement Talks
Deaton, in a detailed post on X (formerly Twitter), shed light on the absence of substantial settlement discussions between Ripple, its executives, and the SEC. He pointed out that the SEC is seeking a hefty $770 million as a penalty and emphasized the complexities surrounding the penalty phase, which involves a range of legal processes. Deaton stated:
“I do not believe there has been a single serious conversation regarding a settlement between Ripple, Brad Garlinghouse, Chris Larsen and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
Deaton further explained that the penalty phase requires extensive measures, similar to a second legal case. This phase involves depositions, document requests, emails, financial records, contracts, and on-demand liquidity (ODL) transactions. To potentially reduce the $770 million penalty, Deaton suggested Ripple might focus on excluding ODL transactions and cutting down on additional expenses. He cited the LBRY case as an example, where the SEC initially pursued $23 million but eventually settled on a $130,000 fine after eight months of litigation.
Predicting the Timeframe
Deaton provided insights on the potential timeline for the resolution of the case. He stated:
“I don’t expect a final judgment, issued by Judge Torres, until late summer, at the earliest. It literally could take a full year before an appeal is filed in this case.”
Deaton also drew a connection between Ripple’s case outcome and the SEC’s lawsuit against Coinbase. If Coinbase’s motion to dismiss is successful, Deaton suggests that the SEC may reconsider its stance on cryptocurrencies and be more open to a settlement with Ripple. However, if Coinbase’s motion fails, Deaton does not foresee a settlement taking place.
The Importance of Coinbase’s Motion
It is worth noting that Coinbase’s motion to dismiss the SEC’s case is scheduled for oral argument on January 17, 2024. A decision is expected within 60–120 days following the argument. During this period, Ripple may face significant legal expenses while striving to reduce the $770 million penalty.
Despite the uncertainty and the potential lengthy legal battle, Deaton’s insights provide valuable perspectives on Ripple’s ongoing conflict with the SEC. As the case unfolds, Ripple, its executives, and the crypto industry as a whole will closely monitor the developments in the courtroom.
Editor Notes: Navigating Uncertain Legal Battles
The legal battle between Ripple and the SEC has undoubtedly captured the attention of the crypto community. As stakeholders await the resolution of the case, it is crucial to stay informed about the latest updates and analysis from reliable sources. To stay up-to-date with the latest crypto news, including updates on the Ripple-SEC case and other important developments in the industry, visit Uber Crypto News.