As the Remedies Phase Approaches, the Ripple vs SEC Dispute Intensifies: Is a Settlement Still Possible?
In a recent live broadcast, pro-XRP lawyer John Deaton definitively dismissed rumors of settlement talks between the SEC and Ripple amidst the SEC’s investigation into Ripple’s financial records. Deaton, a staunch defender of Ripple, characterized the ongoing legal proceedings as a fierce battle.
Deaton emphasized that there are currently no discussions about settling the dispute between the SEC and Ripple. This clarification comes after the SEC requested Ripple’s financial statements and contract details for the years 2022-2023. Deaton highlighted the intensity of the legal fight, describing it as a serious battle that will continue to the next phase.
While Deaton maintains that settlement talks are not happening at the moment, he believes it may occur in the future. He suggests that settling could be advantageous for the SEC if they can achieve a more favorable outcome than what a court decision might bring. Deaton explained that settling could be a strategic move for the SEC to avoid potential embarrassment from another unfavorable ruling.
As the lawsuit progresses to the remedies stage, there is speculation about the potential fines Ripple may face for alleged violations related to institutional sales. Deaton mentioned that the SEC is interested in Ripple’s financial records and is investigating contracts made after the complaint. He predicts that Ripple may be able to demonstrate the legitimacy of most sales, resulting in fines ranging from $10 million to $100 million. These fines would be significantly less than the $200 million Ripple has spent on legal defense.
Deaton also provided insights into what might happen if there is an appeal. He expressed confidence that a higher court would support Judge Analisa Torres’s decisions, particularly regarding sales and the distribution of Ripple’s cryptocurrency. Deaton believes these decisions would likely hold firm even in the face of an attempted appeal.