Pro-Xrp Attorney Reveals Next Steps After Sec Demands $700 Million Settlement From Ripple

It is expected that the US Securities and Exchange Commission (SEC) and Ripple Labs will proceed with finalizing a settlement following the formal dismissal of the SEC's allegations against Ripple's CEO Brad Garlinghouse and co-founder Chris Larsen. Aligned with this perspective, legal expert John Deaton, who supports the use of #XRP, has explained the expected course of action for the settlement.

The process of reaching a settlement is anticipated to be intricate and demanding.

In a social media post on the X platform (formerly known as Twitter), Deaton expressed his doubts regarding the absence of substantial discussions concerning the resolution of the legal dispute between the Securities and Exchange Commission (SEC) and Ripple, as well as its officials. According to his statement, the Commission has expressed strong dissatisfaction and embarrassment, seeking a penalty of $770 million in response to #Ripple's alleged breach of securities regulations.

The author also noted that the penalty phase is more complicated than it might appear, resembling a secondary legal proceeding that requires a larger number of depositions, interrogatories, document production requests, email correspondence, bank statements, contracts, and ODL transactions.

The complexity of the process is further compounded by the differing positions of the SEC, which insists on imposing a $770 million penalty, and Ripple, which aims for a substantial reduction in the amount, as articulated by Deaton. To achieve this objective, Ripple intends to exclude the transactions facilitated by its On-Demand Liquidity (ODL) service. The Securities and Exchange Commission (SEC) may argue that these transactions fall within the purview of institutional sales that have violated securities laws.

Deaton also referred to the legal proceedings initiated by the Securities and Exchange Commission (SEC) against LBRY, a decentralized content-sharing platform. These proceedings involved a prolonged period of litigation lasting eight months, culminating in a court ruling that mandated the platform to pay a fine of $111,614 to the Commission. The aforementioned case was characterized by its complexity, as both sides were required to submit various briefs and undergo depositions.

An Analysis of the Potential Outcome of the Securities and Exchange Commission's Lawsuit Against Ripple

Regarding the potential timeframe for Judge Analisa Torres to issue a final decision, Deaton does not anticipate one until the late summer, at the earliest. Considering this perspective, the individual noted that it may take a full year before the Securities and Exchange Commission (SEC) or even Ripple has the opportunity to submit an appeal in this specific legal matter.

The lawyer reiterated the significance of Coinbase's Motion To Dismiss (MTD) in relation to this matter and its possible implications for a settlement. According to the statement, it is suggested that if Judge Failla approves the request, the Securities and Exchange Commission (SEC) may be compelled to reconsider its stance against cryptocurrencies and engage in negotiations for a potential resolution with Ripple.

Nevertheless, the likelihood of reaching a settlement would be low if the cryptocurrency exchange were to experience a decline in its monthly trading volume. Coinbase has submitted a request to the judge, seeking the dismissal of the Securities and Exchange Commission's (SEC) lawsuit against the company. The argument put forth by Coinbase revolves around the assertion that the SEC lacks jurisdiction over the actions conducted by the company. The scheduled date for the oral argument in the Coinbase case is January 17, 2024, and a decision is expected to be reached within a timeframe of 60 to 120 days thereafter.