Prominent attorney John Deaton has shared his views on the ongoing case between Ripple and the US Securities and Exchange Commission (SEC). Deaton predicts a prolonged timeline before a final judgment is reached and believes that a settlement between the two parties is unlikely. He emphasizes that the penalty phase of the case will require thoroughness and compares it to a second case, involving depositions, interrogatories, and requests for production of documents. Ripple is expected to make efforts to reduce the $770 million penalty by excluding certain transactions and minimizing expenses. Deaton cites the LBRY case as a reference, where it took eight months of additional litigation before a fine was issued. He projects that a final judgment in the Ripple-SEC case will not be issued until late summer at the earliest, and it could take a full year before an appeal is filed. Deaton also links the outcome of Ripple’s case to another lawsuit involving Coinbase. If Coinbase wins its motion to dismiss, he believes the SEC will be forced to pivot its anti-crypto agenda and potentially work out a settlement with Ripple. However, if Coinbase loses its motion to dismiss, Deaton predicts no settlement. The oral argument on the Coinbase motion is scheduled for January 17, 2024, with a ruling expected between 60-120 days later. Deaton suggests that the SEC may try to delay the final ruling against Ripple due to the Coinbase case. Deaton clarifies that the penalties in the Ripple case are not related to fraud but rather to the sale of unregistered securities in the context of a new asset that other federal agencies have declared as “virtual currencies.” He highlights Ripple’s proactive engagements with various US financial regulators since 2013 and notes that XRP was recognized as a “convertible virtual currency” by FinCEN and the DOJ in 2015. Deaton also mentions that SEC enforcement lawyers did not recommend that Ripple stop selling XRP or take enforcement action in 2018. He concludes by emphasizing the need for a nuanced understanding of the case and believes that Judge Torres will consider these facts and not be out to hurt Ripple.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | John Deaton |
| Companies | FinCEN, LBRY, Ripple, SEC, Coinbase |
| Currencies | XRP |
| Securities | None |
