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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Oct 26, 2023 07:53 UTC
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Ripple vs. SEC: $770M Penalty in Question, but Is a Settlement in Sight?
SEC is now seeking $770M in penalties, beyond just determining whether XRP is a security.
Ripple is negotiating to reduce the penalty, with a chance of success.
Coinbase vs. SEC oral argument on January 17, 2024, could impact Ripple's case.
In the SEC vs. Ripple case, things have taken an unexpected turn, introducing more uncertainty. And just when we were thinking that all is well!
John Deaton, a prominent pro-XRP lawyer and the founder of CryptoLawUS, has revealed new insights into this legal battle. You don’t want to miss this for sure. Read on!
Beyond the Courtroom
According to John Deaton, the SEC is “pissed and embarrassed,” it’s now out for what he refers to as “$770M worth of flesh.” It’s not just about determining whether XRP is a security; the SEC wants to make an example out of Ripple.
Deaton reveals that the penalty phase is like a “second case” involving more depositions, interrogatories, requests for document production, and more.
Negotiations are on
Ripple is determined to significantly reduce the SEC’s proposed $770 million penalty. They aim to exclude certain transactions and closely examine expenses and costs. Deaton compares this situation to a similar case involving the SEC and LBRY, which saw a substantial reduction in fines.
This suggests that Ripple may have a strong chance of reducing the hefty penalty.
Significance of Coinbase vs SEC
John Deaton has identified January 17, 2024, as a crucial date in this legal battle. On this day, an oral argument on the Coinbase motion is scheduled. Deaton predicts that if Coinbase succeeds, it may force the SEC to rethink its strategy, potentially opening the door to a settlement with Ripple. If Coinbase loses, hopes for an agreement between Ripple and the SEC could diminish.
Deaton points out the conflicting messages from various federal agencies regarding XRP’s classification. From meetings in 2013 to settlements in 2015, XRP’s status remains unclear. Deaton believes this ambiguity may work in Ripple’s favor as the case unfolds.
Is A Decision Coming Anytime Soon?
Looking ahead, Deaton anticipates that a final judgment from Judge Torres may not arrive before late summer at the earliest. He also cautions that it could be a full year before an appeal is filed in this case. During this extended legal process, Ripple might face substantial legal fees reaching tens of millions of dollars.
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