Deaton Predicts a Long Legal Battle
Pro-Ripple lawyer John Deaton is bracing for a prolonged legal confrontation in the ongoing case between the United States Securities Exchange Commission (SEC) and Ripple. Deaton forecasts the possibility of the legal proceedings extending for a year, emphasizing that there hasn’t been “a single serious conversation” about a potential settlement between Ripple and the SEC.
The Complexities of a Potential Settlement
In a meticulous exposition, Deaton elucidated the complexities enveloping the penalty phase of the case. The SEC’s aspiration for a staggering $770 million penalty has been a significant point of contention. The penalty phase is depicted as a labyrinth of legal processes, involving intricate facets such as depositions, document requests, and scrutiny of financial records and contracts.
Ripple’s Strategy to Reduce Penalties
Deaton indicates that Ripple could be strategizing to mitigate the hefty penalty by omitting certain transactions and curbing additional expenditures. Drawing parallels with the LBRY case, where the SEC substantially reduced the initially pursued penalty after exhaustive litigation, he hints at a possibility of a similar scenario unfolding for Ripple.
Influential External Factors
An intriguing aspect highlighted by Deaton is the potential influence of another pivotal lawsuit – the SEC against Coinbase. He speculates that the outcome of Coinbase’s motion to dismiss the SEC’s case could significantly sway the SEC’s stance on cryptocurrencies, subsequently affecting its approach towards a settlement with Ripple.
The Road Ahead
As the legal saga unravels, a definitive judgment is not expected until the latter part of the summer, according to Deaton. Ripple’s journey through this legal maze is anticipated to be fraught with substantial legal costs and strategic maneuvering to navigate the tumultuous waters of this high-stakes litigation.