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- Renowned crypto lawyer John E. Deaton has debunked chances of a settlement between SEC and Ripple.
- The veteran legal expert said an IPO emergence for Ripple is also not likely.
John E. Deaton, a popular crypto lawyer, has shared his opinion on whether a settlement is still possible at this point in the Ripple Labs vs. United States Securities and Exchange Commission (SEC) lawsuit.
As the excitement over Ripple’s partial victory in the summary judgment heightens, Deaton ruled out the possibility of a settlement between both parties. The CryptoLaw founder’s statement was in response to an XRP community member who posed a question about what was preventing a settlement on the remaining issues.
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
However, he believes that there is an exception and that is if Judge Failla grants Coinbase’s motion to dismiss the SEC lawsuit, or partially grants it if she finds that token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws but allow the staking issue to proceed. If this is the case, he noted that the commission and its Chair Gary Gensler may be forced to change direction.
Another pitfall in this case is that the SEC may not be allowed to go ahead with an appeal as it has planned already.
Already, Judge Analisa Torres ruled that XRP is not security on July 13th and Ripple’s Chief Executive Officer (CEO) Brad Garlinghouse feels that a settlement would have been achievable before the summary judgment decision if the SEC deemed XRP not to be a security.
Ripple vs. SEC: Victory Party and Potential IPO
Meanwhile, Ripple is getting set for the second lap of the legal battle with the SEC after the judge granted the motion of leave to file an interlocutory appeal. Ripple opposed the SEC’s attempt to fast-track the appeal process citing that the Court’s decision is governed by a predominant legal question and that the SEC failed to demonstrate a considerable ground for a difference in opinion.
The U.S District Court for the Southern District of New York, however, likely granted the motion to further elucidate Judge Torres’ stance on the case. Also, it is worth noting that this motion is only permitting the filing of an appeal and not allowing an appeal itself. Deaton already feels like the motion will be rejected when it is eventually filed.
While speaking at the onXDC Live blockchain industry conference which was held in Texas, Deaton mentioned that the court will reject the motion put forward by the SEC and when this eventually happens the regulator would have to wait until next year before filing a full appeal in the Second Circuit.
With the victory inked, Ripple is still on track to hold a party for the community on September 29th. It was previously believed that the blockchain payment firm will announce a possible settlement with the SEC but with the recent statement from Garlinghouse, it looks like that will not be the case.
There was also speculation that Ripple would announce its Initial Public Offering (IPO), however, Deaton has equally debunked that assumption in previous posts.
