Attorney John Deaton: “No Settlement In Sight” For Ripple Lawsuit

By Vince • February 2, 2024 9:31 am • Comments

Although Ripple Labs has already won significant battles in the ongoing SEC V Ripple lawsuit, the matter is far from settled.

According to attorney John Deaton, there is ‘No settlement in sight’ for the litigation that has raged on for years now. The Securities and Exchange Commission is now attempting to force Ripple to disclose its financial statements from 2021-2023.

The SEC is adamant in showing that Ripple violated the 1934 Securities Act by making sales illegally to institutional clients.

Trending: Is The SEC Planning To Change The Definition of Accredited Investor? 10X Lockout?

However, if Ripple can successfully argue that the sales qualify as exempt from the statutes laid out in the 1934 Securities Act, then it can successfully thwart the SEC’s plans.

Conversely, if the SEC can prove its point, Ripple Labs will be on the hook for hefty fines that could spell trouble for the crypto company. Here’s what pro-XRP attorney Deaton had to say in a recent CryptoLaw podcast:

Jack The Rippler provided a timeline for the ongoing lawsuit:

“March 13, 2024: The deadline for the SEC to file its remedy-related brief. April 12, 2024: The deadline for Ripple to file its opposition to the SEC remedy-related brief. April 19, 2024: The deadline for the SEC to file its reply, if any, to the Ripple opposition brief.

After the filings, Judge Torres will decide the penalty for breaching securities laws. A ruling could come in the summer. Upon conclusion of the case, Ripple and the SEC can appeal against any rulings.”

According to Coin Edition:

Furthermore, the attorney highlighted Ripple’s response, which denounces the SEC’s attempt to expand allegations beyond the scope of the initial complaint.

Ripple has described the regulator’s attempt as an inappropriate extension of litigation. Moreover, Ripple contends that the discovery stage has concluded, and prolonged scrutiny of additional transactions would be unjustified.

Attorney Bill Morgan explained: “Now that moronic FUD about the SEC v Ripple case has started again it may be time for an update on what is really happening:
The matter is not about to settle. On 11th January, the SEC filed a motion to compel Ripple to disclose its 2022 and 2023 financial statements and post Complaint (since 12/20/20) contracts with institutions.”

CNBC recently provided this statement from Ripple CEO Brad Garlinghouse aimed at Gary Gensler:

“I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.”

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