Lawyer Maps Potential Ripple-SEC Settlement Amid Coinbase Influence
- John Deaton speaks on the possibility of Ripple and the SEC reaching a settlement with its ongoing case.
- XRP continues its decent run as it kickstarts the new week with a surge in trading volume.
Conversations on the Ripple vs. SEC lawsuit is still ongoing, especially as the SEC looks to make an appeal to the court’s recent decision.
Some market players have highlighted that Ripple is open to a settlement if the SEC affirms that the XRP is in fact not a security. However, attorney John Deaton insists that a settlement can only be reached on a different condition.
“I recall Ripple saying that if the SEC agreed that XRP is not a security, there would be a settlement almost instantly. Well, the court has now declared that XRP itself is NOT a security, and the SEC itself conceded that XRP is not a security in its latest court filing. So, what is preventing a settlement over the remaining issues?” A user wrote in a recent post shared to X, formerly known as Twitter.
In response, the Ripple supporter and attorney explained that Ripple and the SEC could reach a settlement before the close of the year. However, the only way this settlement will be finalized, is if the Judge handling Coinbase’s motion grants the exchange motion to dismiss its case. According to Deaton, if the motion is granted, it would then mean that token sales on exchanges in a blind bid/ask transaction do not fall under U.S. securities laws.
Ripple (XRP) records a 32% spike in trading volume
Deaton further explains that if this becomes the case, then the U.S. Securities and Exchange Commission, along with its Chairman, will have no choice but to turn the wheels.
As his post reads;
If that happens then the SEC and Gary Gensler may be FORCED to pivot. I doubt the Solicitor General would allow an appeal in that scenario, one that could reach the Supreme Court, allowing for the high Court to further strip away, not only the SEC’s power, but all other federal agencies as well.
The only way @Ripple and the @SECGov settle before the end of the year is if Judge Failla grants the @coinbase MTD (or partially grants it – finding token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws but allows the staking component… https://t.co/0KzGT1l0OI
— John E Deaton (@JohnEDeaton1) September 2, 2023
It is worth noting that on the 1st of September, Ripple spoke against the SEC’s push for an appeal. According to Ripple, the SEC’s case is not strong enough to warrant an appeal.
Ripple’s response comes not long after the SEC sought approval from the federal judge, to appeal her ruling, after discovering that Ripple’s sale of XRP did not violate securities guidelines.
Meanwhile, despite the continuous debates, the XRP token seems to be performing decently in the market. Although altcoin has recently recorded a dip in daily price gains, it has seen a significant upsurge in trading volume. Over the last 24 hours, XRP’s trading volume has surged by 32 percent, while the asset traded at a press time price of $0.50.
