NewsletterXRP Lawsuit: Attorney Says US SEC May Settle In Only One Scenario
John Deaton, the attorney representing the token holders in the XRP lawsuit, believes the US Securities and Exchange Commission (SEC) and Ripple will not go for a settlement. He made the statement on the grounds that the SEC under Chair Gary Gensler’s leadership, is also waging a war against other crypto platforms.
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SEC Is Waging War Against Crypto
Attorney Deaton compared the US SEC’s stance against crypto companies as a war like situation. He also mentioned US Senator Elizabeth Warren’s bill to curb the alleged misuse of cryptocurrencies in illegal activities like money laundering, drug trafficking, and sanctions evasion. Speaking in a podcast, Deaton said the US SEC would look in a bad position if it were to go for a settlement in the XRP lawsuit and later enforce regulation on other cryptocurrencies.
“We are in war. Elizabeth Warren just initiated the bill. It bans Bitcoin in the United States.”
However, the attorney said the only scenario in which the two parties would be caused to settle would be if Coinbase wins their motion to dismiss or partially wins it. In June 2023, the SEC alleged that Coinbase operated an unregistered securities exchange and facilitating the trade of crypto assets considered as securities. In response, the crypto exchange filed a motion to dismiss the case, arguing that the crypto assets it do not qualify as securities and that the SEC lacks the jurisdiction to regulate the crypto market.
XRP Institutional Sales
Speaking about the Ripple lawsuit concerning the institutional sale of XRP tokens, the attorney mentioned about a US Supreme Court Vs Morrison lawsuit that ruled that the SEC has jurisdiction only in the United States. Hence, this could safeguard a majority of token sales Ripple did outside of the US, leaving out a minor part of sale to US institutional investors, Deaton explained. In the July 2023 Summary Judgment, judge Analisa Torres ruled in favor of Ripple in terms of token sale to retail customers.
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