XRP Lawsuit: Legal Expert Suggests Ripple May Consider Settlement Even If It Scores Major Win Against SEC
As the crypto world eagerly awaits District Judge Analisa Torres’s ruling in the landmark case between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, pro-XRP attorney John E. Deaton is hinting that the San Francisco-based enterprise blockchain company could agree to new settlement terms. Deaton, however, emphasized that this will depend on the ruling in the lawsuit.
Expert’s Opinion Regarding A Likely Ripple-SEC Settlement
John Deaton has taken to Twitter to highlight various scenarios that could influence Ripple’s decision on whether or not to settle.
Deaton’s comments come amid chatter among the community of a secret meeting between Ripple and the SEC. In his opinion, the terms of a potential settlement would depend on the specifics of the outcome of the ongoing litigation.
One important consideration would be whether leading U.S.-based digital assets exchanges like Coinbase and Kraken would immediately restart XRP trading on their platforms or wait for a possible appeal by the SEC. Coinbase delisted XRP in January 2021, immediately after the SEC launched its lawsuit against Ripple. Despite vocal appeals by the XRPArmy, Coinbase has remained unmoved.
Another key consideration would be whether major Ripple partner, Bank of America, would feel comfortable about the court verdict or wait to see if Judge Torres gets overturned in the event the SEC appeals her decision.
Deaton notes that the SEC could possibly file a notice of appeal and later withdraw it, leaving room for more negotiations.
The XRP amicus curiae also pinpointed a theoretical scenario in which the U.S. securities regulator told Ripple it would issue a public statement that all future sales of XRP don’t constitute securities and not appeal Judge Torres’ ruling if the payments firm agrees to pay $50 million. Deaton says, in this case, Ripple boss Bradley Garlinghouse would swiftly sign off on the settlement as this would provide the certainty the company has long clamoured for and return liquidity to the U.S. market.
Still, if Judge Torres rules that Ripple did not violate federal securities laws and subsequently revives liquidity to U.S. markets without causing businesses to worry about being in the SEC’s crosshairs if they utilize the XRP cryptocurrency, then Ripple will ultimately decide to refrain from a settlement.
After two gruelling years in the Southern District of New York, a ruling in the XRP lawsuit could further define what crypto assets are considered securities in the United States.
Source: Read Full Article