According to attorney John Deaton, cryptocurrency firm Ripple Labs could settle with the SEC for $100 million to $250 million in fines. Deaton’s comment came as a response to questions about the possibility of a partial appeal and settlement in the legal dispute between Ripple and the agency. Deaton represents XRP holders in the ongoing lawsuit as an amicus curiae (friend of the court).
However, the blockchain firm will only settle if the SEC states that none of the firm’s sales of XRP constitute securities. However, in its fight against the cryptocurrency sector, the SEC might not consent to such a demand from Ripple. Furthermore, the attorney added that Judge Analisa Torres could clarify regulatory issues for XRP secondary market transactions.
Who will come out on top in the SEC vs. Ripple battle?
Deaton’s remarks come in the midst of the never-ending questions from members of the XRP community who want to know whether Ripple and the SEC could reach a settlement before Judge Analisa Torres renders her decision in the case.
Deaton recently shared his opinion that he is convinced the SEC would lose its legal dispute. The lawyer thinks the SEC’s “gross overreach” will come to an end as a result of the setback. To bolster his arguments, the lawyer cited the Virginia v. EPA litigation.
Deaton’s tweet came in response to Stuart Alderoty’s tweet that the financial watchdog had lost 4 out of its 5 lawsuits at the Supreme Court. Moreover, Deaton has said that the lawsuit’s summary judgment brief is an “extremely well written appellate brief.”
Deaton claimed in a tweet on Jan. 1 that the SEC, led by Gary Gensler, is not considering settling with Ripple due to the latter’s demands. Attorney Deaton maintained a month later that the parties would not consent to a settlement until Judge Torres made a decision on the matter.
If Ripple prevails, US-based exchanges may decide to relist XRP. A relist could drive up the price of the asset dramatically. However, an SEC victory might spell bad news for Ripple and the digital asset.