Deaton’s Legal Expertise on 2024’s Major Crypto Lawsuits: Insights from Ripple to Coinbase
In an end-of-year interview with Fox journalist Eleanor Terrett, Deaton shared an interesting perspective on how Judge Analisa Torres might approach Ripple’s Settlement in the coming year. He suggested that the judge might not impose a severe penalty on the company, particularly considering the non-fraudulent sales made to institutional investors. This insight provides a nuanced understanding of the potential legal consequences Ripple may face.
Looking ahead to 2024, Deaton predicts that a decision will be reached regarding the appropriate penalty for Ripple’s XRP token sales to institutional investors. He emphasizes the legality of these sales outside the U.S. and the potential role of On-Demand Liquidity (ODL) in reducing Ripple’s disgorgement amount from $770 million to a possible settlement of $20 million.
But that’s not all that’s in store for 2024!
Deaton Takes On the Coinbase Case
After successfully rallying his 75,000-strong XRP army to victory in the Ripple vs SEC case, John Deaton has hinted at his support for Coinbase in their legal battle with the SEC. The victorious lawyer in the ongoing SEC vs Coinbase lawsuit appears to be committed to protecting the interests of individual token holders. His plan to file an amicus brief in the Coinbase lawsuit, should the exchange fail in its motion to dismiss, demonstrates his dedication to advocating for the direct representation and safeguarding of the rights of Coinbase customers and token holders.
Deaton’s inclination stems from his belief that the asset sales were conducted through an intermediary, Coinbase, rather than directly by Ripple. This perspective leads him to anticipate a partial victory for Coinbase in the dismissal motion, highlighting the crucial role played by the intermediary in these transactions.
Here’s where it gets interesting!
The potential involvement of an amicus brief in the Coinbase lawsuit adds an intriguing twist. Deaton intends to file this brief on behalf of Coinbase customers if the exchange’s motion to dismiss is unsuccessful. His aim is to advocate for individuals and token holders to have a say in their representation, rather than relying solely on the U.S. SEC and Coinbase to protect their interests.
Furthermore, Deaton’s prediction of a partial victory in the dismissal motion is based on the argument that the asset sales occurred through an intermediary (the exchange) rather than directly from Ripple. This aligns with Coinbase’s position that the SEC’s references to older laws require clearer guidance for cryptocurrency companies, an issue that the agency has yet to address following a rulemaking petition submitted on June 14, 2023.
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Ripple (XRP)