Cryptocurrency

Attorney Deaton Explains Why SEC Can Only Be Forced To Settle XRP Lawsuit with Ripple

John Deaton, the lawyer representing over 75,000 XRP holders, recently opined that the United States Securities and Exchange Commission (SEC) can only be forced to settle the ongoing XRP lawsuit with Ripple.

Speaking at a recent X space, Deaton dismissed speculation that the SEC was considering a settlement, highlighting the regulator’s reluctance to engage in negotiations with Ripple. He said they can only be forced to the settlement table.

Read Also: XRP Holders Attorney John Deaton Hints At Major Announcement Coming This Friday

John Deaton noted:

“I don’t think the SEC has a settlement on their mind. I think that they are going to be forced to the table. But I don’t think that they are there yet.”

Deaton’s analysis centers around his assertion that the SEC’s leadership, led by Gary Gensler, harbors an “arrogant” attitude towards the case. He argued that the regulatory agency did not expect strong defense from Brad Garlinghouse and Chris Larsen after the lawsuits were filed against them.

Furthermore, Deaton pointed out that the regulatory agency did not expect the significant impact that the opinions of 75,000 XRP holders could have on the court’s decision.

Despite recognizing the possibility of the SEC crafting a Ripple settlement that allows the regulator to pursue other crypto projects, Deaton contended that such a decision would be precarious due to the conditions Ripple would likely impose as part of the settlement. Therefore, he believes that a settlement is unlikely unless Ripple’s key arguments are acknowledged.

Notably, Ripple aims to establish that secondary market XRP sales do not constitute securities transactions, aligning with recent court rulings. Additionally, Ripple seeks recognition that its On-Demand Liquidity (ODL) platform, which utilizes XRP, is not breaking any security law.

Read Also: John Deaton’s Notable Reference: “XRP Was Solving the Friday Night Problem”

One of the key reasons cited by Deaton for the SEC’s potential resistance to settling with Ripple is the impact it would have on the regulator’s lawsuit against Coinbase. The SEC filed a lawsuit against the cryptocurrency exchange in June, alleging that it operates an unregistered securities exchange.

If the SEC were to accept Ripple’s claims, Coinbase could argue that it only operates as a secondary market, effectively undermining the core claims behind the SEC’s case.

Considering these complex dynamics, both the Ripple and Coinbase cases are expected to prolong into the next year, which could ultimately provide much-needed regulatory clarity for the crypto industry. Deaton concluded that a resolution would enable the flourishing of underlying technologies within the US market, fostering innovation and growth.

As this legal battle unfolds, all eyes remain on the SEC’s response, with Ripple supporters hoping for a breakthrough that could alter the course of regulatory oversight in the crypto space.


Follow us on Twitter, Facebook, Telegram, and Google News

Adedoyin Aka

Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

Recent Posts

Analyst Predicts 1000% XRP Price Rally If Bitcoin Hits This Price Milestone

In a recent X post, crypto analyst Egrag Crypto expressed a bullish outlook on the…

18 minutes ago

This Altcoin Has Been Nicknamed XRP 2.0 And Experts Believe It Can Rally Over 1500x

The cryptocurrency market shows excitement about XRP 2.0 as an alternative token because it could…

24 minutes ago

They Are Clearing Path for XRP to Become the Mainstream Coin for US Treasury and Banks

Recent discussions on X have fueled speculation about XRP’s potential role in the U.S. financial…

1 hour ago

Best New Meme Coins to Invest in March 2025: 4 Picks for Maximum Gains Such as BTFD & DOGE

Meme coins have come a long way from being just an internet joke. In 2025,…

3 hours ago

Top Cryptos for Significant Returns: Why Cardano’s Missed Opportunity Is Real and Qubetics is a Game-Changer in 2025

The cryptocurrency market has been buzzing lately, and not just because of the roller-coaster prices.…

7 hours ago

Kaspa Price Plunges 24.8% In 30 Days, FloppyPepe (FPPE) Receives 1,500% Growth Prediction From Top Wall Street Analyst

Meanwhile, the Kaspa price has recently dropped by 24.8%. FloppyPepe (FPPE) receives a bold prediction…

10 hours ago