- John Deaton, the attorney representing the XRP token holder community, dispels notions of a settlement or IPO announcement at Ripple’s upcoming ‘Proper Party’.
- The party, scheduled for September 29, 2023, is a commemoration of Ripple’s recent legal win, where XRP was ruled not to be a security.
The Setting: Ripple’s Celebratory Gathering
After its partial legal victory against the U.S. Securities and Exchange Commission (SEC), Ripple Labs is set to host a celebration event, named the ‘Proper Party’, on September 29, 2023, in New York City. The anticipation in the XRP community is palpable, with many wondering if the occasion will bring forth groundbreaking announcements. Given the legal complexities surrounding Ripple and its native token, XRP, speculation has naturally veered towards the possibilities of a lawsuit settlement with the SEC or an Initial Public Offering (IPO) announcement.
🚫 No insider scoop here, but it's crystal clear: No settlement or IPO news at @Ripple's Proper Party! 🥳🎉 Why, you ask? Well, the @SECGov isn't throwing any approval parties while they're in legal showdown mode!🔒💼 Stay tuned for the legal drama! 🍿📜 #Ripple #SEC… https://t.co/rIozvq9cO0
— Collin Brown (@CollinBrownBTC) September 4, 2023
Legal Insights: John Deaton Weighs In
John Deaton, the attorney who has been a vocal advocate for XRP holders, offers a well-grounded perspective. Contrary to the community’s rising anticipation, he rules out the possibility of Ripple announcing either a settlement or an IPO at the event. The reason is intricately tied to the ongoing legal scenarios involving not just Ripple but also Coinbase, another prominent entity that faced SEC scrutiny earlier this year.
I have ZERO insider information. With that said, let me tell you that at the @Ripple Proper Party there won’t be an announcement of a settlement. See why I say that below 👇
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— John E Deaton (@JohnEDeaton1) September 3, 2023
Deaton explains that a settlement with the SEC is unlikely at this juncture because any such outcome would be contingent upon significant developments in the Coinbase vs. SEC lawsuit. As for an IPO, Deaton is quick to point out the improbability given that the SEC still seeks a permanent injunction against Ripple concerning future institutional sales of XRP. In essence, the SEC is not in a position to greenlight an IPO for a company it is actively litigating against.
Moreover, Deaton alluded to a potential scenario where the SEC might have to reconsider its stance. If Judge Failla, who presides over the Coinbase lawsuit, makes a ruling that contradicts or limits the SEC’s interpretation of U.S. securities laws, it could trigger a paradigm shift. In such a case, the SEC, led by Gary Gensler, would be forced to reevaluate its positions, not just vis-a-vis Ripple but possibly extending to the broader crypto industry.
A Ripple in the Regulatory Waters
While the ‘Proper Party’ serves as a significant milestone for Ripple Labs, it appears that the event is more a celebration of battles won than the end of the war. With complex legal landscapes and regulatory uncertainties, Ripple’s journey, much like the broader cryptocurrency ecosystem, remains laden with both challenges and opportunities.
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