It is anticipated that the US Securities and Exchange Commission (SEC) and Ripple Labs will go on with the completion of a settlement after 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 elucidated the anticipated course of action for the settlement.
The process of reaching a settlement is expected to be complex and challenging.
In a social media post on the X platform (previously known as Twitter), Deaton expressed his skepticism about the absence of any 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 expressed strong dissatisfaction and embarrassment, and is seeking a punishment of $770 million in response to #ripple 's alleged breach of securities regulations.
The author further observed that the punishment phase is not as simple as it may appear, resembling a secondary legal proceeding that necessitates a greater number of depositions, interrogatories, demands for document production, email correspondence, bank statements, contracts, and ODL transactions.
The complexity of the process is further compounded by the contrasting positions of the SEC, which is adamant about imposing a $770 million penalty, and Ripple, which seeks a substantial reduction in the amount, as articulated by Deaton. In order to accomplish this objective, Ripple intends to exclude the transactions facilitated by its On-Demand Liquidity (ODL) service. The Securities and Exchange Commission (SEC) may assert that these transactions fall within the purview of institutional sales that have breached securities laws.
Deaton also made reference 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, since 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 need a complete year before the Securities and Exchange Commission (SEC) or even Ripple has the opportunity to submit an appeal in this particular 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 alter its stance against cryptocurrencies and then engage in negotiations for a potential resolution with Ripple.
Nevertheless, the probability of reaching a settlement would be low in the event that the cryptocurrency exchange were to see a loss 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 out by Coinbase is centered on 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 it is anticipated that a decision would be reached within a timeframe of 60 to 120 days thereafter.
