Pro-XRP attorney John Deaton, who is defending several XRP token owners amid rumors of a possible resolution between Ripple and the US Securities and Exchange Commission (SEC), has laid out the potential stages the two sides might follow if they decide to settle.
The importance of the ongoing Coinbase v. SEC lawsuit was emphasized by Deaton.He said it would mean that token sales on the exchange are exempt from U.S. securities laws if the Coinbase case judge granted the company’s move to dismiss.It wouldn’t, nevertheless, apply to cryptocurrency staking.
“The only way Ripple and the SEC (could) settle before the end of the year is if Judge Failla grants the Coinbase motion to dismiss or partially grants it – finding token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws.” He explained.
The SEC’s ability to pursue an appeal, should the petition to dismiss be granted, would be severely restricted, making a settlement an obvious choice.Deaton stressed that the agency’s authority would be reduced even if an appeal were feasible in this circumstance.
Ripple stated in a document filed on September 1 that the summary decision did not address the interlocutory appeal’s legal foundation.It based its resistance on the claim that the agency had deviated from accepted legal doctrine, particularly in regards to the application of the Howey test to XRP token sales.In December 2020, the SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and its co-founder Chris Larsen. As a result, XRP was removed from multiple exchanges to avoid any future legal issues.However, many exchanges announced their intention to relist the token after Judge Analisa Torres’ favorable verdict in July.
In 2023, the SEC pursued a number of cryptocurrency companies, including Binance and Coinbase, on claims of securities breaches.Asset management Grayscale won a court case against the SEC on August 29 by requesting that its application for a spot Bitcoin exchange-traded fund be reviewed.