Pro-Ripple lawyer predicts prolonged legal battle, hints at settlement factors

Pro-Ripple lawyer John Deaton said helium expects a lengthy ineligible process successful the United States Securities Exchange Commission (SEC) vs. Ripple case — possibly lasting a year. Deaton suggested that a colony whitethorn lone beryllium considered if Coinbase’s question to dismiss the SEC’s lawsuit against it is successful. 

In a elaborate post connected X (formerly known arsenic Twitter), Deaton discussed the deficiency of superior colony talks betwixt Ripple, its executives and the SEC. He mentioned the SEC's tendency for a $770 cardinal punishment and explained the complexities of the punishment signifier involving assorted ineligible processes.

In his words,

“I bash not judge determination has been a azygous superior speech regarding a colony betwixt Ripple, Brad Garlinghouse, Chris Larsen and the SEC. The SEC is pissed and embarrassed and wants $770M worthy of flesh,”.

He explained that the punishment signifier is simply a elaborate process, akin to a 2nd ineligible case, involving depositions, papers requests, emails, fiscal records, contracts and on-demand liquidity (ODL) transactions. Deaton suggests that Ripple mightiness purpose to trim the $770 cardinal punishment by excluding ODL transactions and cutting down connected further expenses. He points to the LBRY lawsuit wherever the SEC initially pursued $23 million, but aft 8 months of litigation, it led to a $130,000 fine.

— John E Deaton (@JohnEDeaton1) October 25, 2023

Creating a timeframe, helium commented,

 "I don’t expect a last judgment, issued by Judge Torres, until precocious summer, astatine the earliest. It virtually could instrumentality a afloat twelvemonth earlier an entreaty is filed successful this case."

Deaton connected Ripple's lawsuit result with different important lawsuit, stating that if Coinbase succeeds successful its question to dismiss, the SEC whitethorn displacement its stance connected cryptocurrencies and see a colony with Ripple. However, if Coinbase's MTD fails, helium foresees nary settlement.

Related: Coinbase disputes SEC’s crypto authorization successful last bid to flip regulator’s suit

The oral statement for Coinbase's question is scheduled for Jan. 17, 2024, with a determination apt to travel wrong 60-120 days. Ripple is expected to look sizeable ineligible costs during this play arsenic it strives to trim the $770 cardinal penalty. It's imaginable that the Coinbase lawsuit could go a origin successful the SEC's efforts to postpone the last ruling connected Ripple, aligning with Deaton's precocious summertime timeline.

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