Attorney outlines Ripple-SEC settlement path amid Coinbase case impact
Amidst speculation regarding a potential resolution between Ripple and the United States Securities and Exchange Commission (SEC), attorney John Deaton, representing numerous XRP token holders, has outlined the possible steps the two parties might take if they opt for a settlement.
Addressing the factors that might impact a potential settlement between the two parties, attorney Deaton pointed out the significance of the ongoing Coinbase vs. SEC lawsuit. He explained that if the judge in the Coinbase case grants the exchange's motion to dismiss, it would indicate that token sales on the exchange are not subject to U.S. securities laws, although the crypto staking aspect remains part of the legal proceedings.
He explained in a post,
Should the motion to dismiss be approved, the SEC's ability to pursue an appeal would be considerably constrained, making a settlement a logical option. Deaton clarified that even if an appeal were possible in such a situation, the agency's authority would be diminished.
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
In a filing on September 1, 2023, Ripple indicated that the Summary Judgment did not address the legal basis for the interlocutory appeal. Their opposition was rooted in the argument that the agency had strayed from the established legal perspective, specifically regarding the application of the Howey Test to XRP token sales.
The SEC initiated a lawsuit against Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen in December 2020,
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