It has been a long and tumultuous road for Ripple (XRP) and its battle against the United States Securities and Exchange Commission (SEC). Recently, Ripple CEO Brad Garlinghouse and co-founder Chris Larsen have been in the spotlight as the SEC has moved to sue both of them in a civil suit.
The suit is seeking to prove that Ripple violated federal securities laws by selling XRP as an unregistered security. Ripple has denied all allegations made by the SEC, and the case is currently in the discovery phase.
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Recently, attorney John Deaton spoke out against the SEC’s lawsuit, explaining why Ripple may still want to settle the case even if it is victorious. According to Deaton, the legal costs associated with fighting the SEC can be incredibly high and may prove to be too much for a company like Ripple to bear.
In addition, Deaton argued that it is in Ripple’s best interest to reach an agreement with the SEC. This would allow Ripple to move forward with its long-term plans and continue to focus on developing its payment technology.
This is not how a settlement happens. First, I believe the only time a settlement occurs in this case is AFTER a ruling by Judge Torres and that happens only if Ripple gets a big victory so Gensler could save face and get a political win via settlement. Sorry not going to happen. https://t.co/k1eEIMtK8f
— John E Deaton (@JohnEDeaton1) May 1, 2023
Ripple has already expressed its desire to reach a settlement with the SEC, but the Commission has been unwilling to budge. In the meantime, Ripple will continue to fight in court, with Deaton expressing confidence that the company will win the case.
Regardless of the outcome, it is clear that Ripple has a lot of work ahead of it. The company must continue to build trust and credibility with regulators, customers, and partners in order to move forward with its plans.
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Deaton believes that settling with the SEC can help Ripple do just that. By settling the case, Ripple can avoid the prolonged legal battle and the expensive costs associated with it, allowing the company to focus on its business.
Moreover, settling with the SEC could open the door for Ripple to expand its operations in the United States. The SEC’s lawsuit is currently a major obstacle for Ripple, and settling it could open up new opportunities for the company.
Quite a few people ask why would Ripple settle if they won. First, I didn’t say Ripple would agree to the same terms of a settlement they would’ve agreed to 2 years ago. It all depends on the ruling itself. Does Coinbase and Kraken immediately relist or wait for an appeal? https://t.co/sCx24acPR4
— John E Deaton (@JohnEDeaton1) May 2, 2023
At the end of the day, Ripple is in a difficult position. While it remains confident that it will win the case against the SEC, the costs and uncertainty associated with a prolonged legal battle may be too much for the company to bear. As such, settling the case may be the best option for Ripple in the long run.
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