- John Deaton, CryptoLaw founder and XRP holders’ attorney, discusses the possibility of a settlement between Ripple and the SEC, suggesting it’s unlikely to occur before a pivotal judgment on Coinbase’s motion to dismiss the SEC lawsuit.
- Speculation is rife that Ripple’s planned event on September 29 could feature announcements of either a settlement or an IPO, though Deaton believes neither is likely.
Ripple’s Long Road to Legal Respite
Amid increasing anticipation for a final judgment in Ripple‘s contentious lawsuit with the U.S. Securities and Exchange Commission (SEC), the market and Ripple enthusiasts have been rife with speculation. A recent partial victory declared Ripple’s XRP as non-security, further fueling discussions on the likelihood of a settlement.
The Verdict and its Ramifications
John Deaton, founder of CryptoLaw and legal counsel for XRP holders, offers critical insights into the lingering question: Is a settlement between Ripple and the SEC still feasible? Deaton, who earlier predicted that a settlement was improbable before the summary judgment, now revisits his assessment. His conjecture is aligned with Ripple CEO Brad Garlinghouse’s stance that the only viable ground for a settlement pre-summary was if the SEC explicitly regarded XRP as not being a security.
The Trigger Points for a Settlement
Deaton postulates that a major determinant for a Ripple-SEC settlement could hinge on a forthcoming judgment related to Coinbase’s motion to dismiss an SEC lawsuit. If Judge Failla accords with Coinbase, thereby opining that token sales on an exchange in a blind bid/ask transaction don’t fall under the purview of U.S. securities laws, it could precipitate a paradigm shift within the SEC.
In such a context, SEC head Gary Gensler and the Solicitor General might be disinclined to pursue an appeal, especially one that could reach the Supreme Court and potentially curtail the SEC’s jurisdiction over similar matters.
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Speculation: Settlement or IPO Announcement?
Simultaneously, Ripple’s planned celebratory event on September 29th has spawned its own set of speculations. The nature of the event, referred to as a “proper party,” and a tweet by Garlinghouse about a “victory toast” have led many to speculate about possible major announcements—either a settlement or an Initial Public Offering (IPO).
Addressing this speculation, Deaton firmly believes that the SEC is unlikely to greenlight an IPO for Ripple at this juncture, especially while seeking a permanent injunction concerning future institutional sales of XRP and actions involving its executives.
As it stands, Deaton’s analysis casts a shadow of uncertainty over an immediate settlement between Ripple and the SEC, pointing instead to external legal developments as potential catalysts for resolution.
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