In the context of the speculation around a possible settlement between Ripple and the US Securities and Exchange Commission (SEC), John Deaton, the attorney representing the thousands of XRP token holders, explained how the two parties may go about if they wish to settle.
John Deaton Explains Potential Settlement Terms
Responding to a question on what could come between the two parties and a settlement, attorney Deaton said the ongoing Coinbase Vs SEC lawsuit could be crucial to the prospect of Ripple settlement. This is because if the judge in the Coinbase case grants the exchange a motion to dismiss, it would mean that token sales on the exchange does not fall under U.S. securities laws, while the crypto staking part continues to be a part of the litigation. He explained,
“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”
If the motion to dismiss is granted, the SEC would find it tough to get an appeal, which makes logical sense to go for a settlement. Deaton explained that even if an appeal is allowed in that scenario, the agency’s powers would be reduced.
SEC’s Move To Certify Interlocutory Appeal
Ripple had in a September 1, 2023 filing stated that the Summary Judgment did not have a mention of the question on the law supporting the interlocutory appeal. Earlier, CoinGape reported that Ripple Labs opposed the SEC’s efforts to certify an interlocutory appeal. The company opposed it based on the argument that the agency deviated from the legal standpoint, which is the application of Howey Test for XRP token sales.
