XRP Lawsuit: Attorney Says SEC Would Rather Settle Than Reveal Documents

March 29, 2022 4:49 pm

The conclusion of the Ripple vs. SEC lawsuit may now be sooner than most people think given the current state of the case which leans heavily in favor of Ripple.

John Deaton explains that the case right now essentially depends on whether the judge will maintain her ruling regarding the Hinman emails.

If she does decide to maintain that ruling, then it is extremely likely that the SEC would opt to settle the case instead of continuing it based on Deaton’s opinion.

The emails have been considered essential evidence by the court which could ultimately decide the fate of the lawsuit.

Drafts of the emails indicates that the SEC did not consider Bitcoin or Ether as securities, but the revelation of Ripple also not being considered in the SEC documents would destroy the SEC’s case against Ripple.

FinanceFeeds reports:

The SEC has recently hinted that if Judge Sarah Netburn sticks to her previous ruling of ordering the production of said emails, notes, and drafts, the plaintiff will appeal to Magistrate Analisa Torres to make the final decision. The same goes for the Estabrook Notes, related to a meeting between ex-SEC’s Elad Roisman and Ripple’s Garlinghouse.

Why is the SEC making such efforts and dragging this issue for so long? Because it would put an end to the XRP lawsuit. These documents are so vital for the SEC that they will rather reach a settlement than handing them over to Ripple, said John Deaton.

“Apparently, Roisman gave Garlinghouse the impression XRP was not considered a security. If the Estabrook notes support Garlinghouse’s testimony and must be produced, [then] game over!

“The SEC will not, in my opinion, turn over these documents. Hence, if we get a ruling that they must be turned over, I believe the case settles w/in 60-90 days from that decision (or possibly sooner).

As a result, if the SEC does not decide to turn over the documents and decides to settle, this could greatly increase the chances of the lawsuit finally concluding sooner than expected.

All it takes is for XRP to be mentioned even once in the 52 different drafts of the Hinman speech for this to help Ripple prevail over the SEC.

The attorney also mentioned that the CEO of Ripple Brad Garlinghouse had previously met with Commissioner Roisman to talk about whether XRP would be considered a security or not.

If the documentation that covers that particular incident show that the overall impression was that XRP was not considered a security, that also once again tips the odds in Ripple’s favor.

All that’s left right now is to wait for the court to order the production of the documents which will make the SEC decide to settle.

FinanceFeeds shares:

In regard to Judge Netburn’s upcoming ruling on whether the Estabrook notes from the Roisman meeting must be turned over to Ripple, Deaton reminded that Ripple’s CEO left that meeting feeling very positive about a decision over XRP.

“Apparently, Roisman gave Garlinghouse the impression XRP was not considered a security. If the Estabrook notes support Garlinghouse’s testimony and must be produced: GAME OVER!”

John Deaton is positive that a court ruling in favor of producing the emails and notes will lead to settlement within two to three months or possibly sooner. Otherwise, there is a 50-50 chance for settlement.

To summarize, an order to produce the documents would speed up the case as the SEC would likely rather decide to settle than reveal documents.

If the order is not given, the case for settlement is still quite likely, but lawsuit would still be further delayed.

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