Attorney Outlines Possible Ripple-SEC Settlement Steps Amid Coinbase Case
Summary:
Attorney John Deaton outlines potential steps for a settlement between Ripple and the SEC, with the Coinbase case playing a crucial role. Ripple opposes the SEC's Summary Judgment over the Howey Test application to XRP token sales. The SEC's pursuit of crypto firms and a successful Grayscale appeal against the SEC are noted. Exchanges are considering relisting XRP following the Torres ruling.
Attorney John Deaton, representing numerous XRP token holders, has provided insights into the potential steps that Ripple and the SEC could take if they decide to settle amid speculations surrounding their resolution.
Deaton emphasized the significance of the ongoing Coinbase vs. SEC lawsuit and how the judge's decision to dismiss the motion could impact the outcome. If the judge rules in favor of Coinbase, it would establish that token sales on exchanges are not subject to U.S. securities laws, except for the crypto staking component that remains under the legal proceedings.
Deaton stated that if the motion to dismiss is approved, it would significantly limit the SEC's ability to pursue an appeal and make a settlement a logical choice. Even if an appeal were possible, the agency's authority would be weakened in such a scenario.
In a filing on September 1, 2023, Ripple expressed its opposition to the Summary Judgment, arguing that the agency had deviated from the established legal perspective, particularly concerning the application of the Howey Test to XRP token sales.
The SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020, leading several exchanges to delist XRP as a precaution against legal complications.
Following the recent Torres' ruling, many exchanges indicated their intentions to relist XRP or explore possibilities for its relisting in the future.
In 2023, the SEC has been actively pursuing allegations of securities violations against various cryptocurrency firms, including Binance and Coinbase. On August 29, asset manager Grayscale achieved a legal victory against the SEC through an appeal that required a review of its application for a spot Bitcoin exchange-traded fund (ETF).
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Published At
9/3/2023 8:19:12 AM
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