Pro-XRP Legal Expert Takes The Spotlight With Daring Ripple Vs SEC Settlement Theory
September 04 2023 - 05:30AM
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There have been talks about the US Securities and Exchange
Commission (SEC) and Ripple Labs reaching a settlement following
the ruling that XRP isn’t a security. Following this, Pro-XRP
lawyer John Deaton has stated a key factor that could lead to a
settlement between both parties. Coinbase’s Motion Key To
Settlement In a tweet released on the X (formerly Twitter)
platform, Deaton stated that the “only way” the SEC and Ripple can
settle this year is if Judge Failla grants Coinbase’s motion to
dismiss the SEC’s lawsuit against it. Related Reading: Shiba
Inu Marketing Lead Sends Important Message To SHIB Holders The
lawyer believes that the key is for Judge Failla to find that token
sales on an exchange as part of a programmatic sale do not fall
under US securities laws. If that happens, the Commission and its
chair, Gary Gensler, may have no choice but to “pivot,” according
to Deaton. He further noted that Judge Failla’s ruling may be
final as he doubts the Solicitor General would allow an appeal as
the case could end up reaching the Supreme Court, which could
“strip away” the SEC’s powers and that of other federal agencies.
The SEC had filed a lawsuit against Coinbase, alleging that the
biggest crypto exchange in the US was operating as an unregistered
securities exchange by offering several cryptocurrencies on its
platform without first registering with the SEC. In response,
Coinbase filed a motion to dismiss the case, stating that the
regulator was stepping outside its jurisdiction with such an
action. The exchange said the token sales weren’t investment
contracts but more commodity sales, with “obligations on both sides
discharged” once the transaction occurred. Interestingly, Coinbase
cited Judge Torres’ ruling in favor of Ripple that programmatic
sales, such as ones on exchanges, didn’t constitute investment
contracts. XRP price remains volatile as legal battle
continues | Source: XRPUSDT on Tradingview.com How Deaton’s
Ripple Settlement Theory Could Play Out Going by Deaton’s theory,
it is believed that the SEC would want to settle with Ripple if the
court ruled that the Commission has no jurisdiction over token
sales on exchanges. This is plausible because Judge Failla granting
Coinbase’s request represents a setback for the Commission in its
case against Ripple. The SEC argues that Ripple’s
programmatic sales constituted an investment contract, making XRP a
security. However, a win for Coinbase ultimately makes the
programmatic sales argument baseless, and it can no longer further
the argument since token sales on exchanges are outside its
purview. Related Reading: New Job Listing Indicates What
Ripple Is Focusing On Next Regarding the SEC and Gensler wanting to
“pivot,” as mentioned by Deaton, this could mean the Commission
solely focusing on Ripple’s sale to institutional investors, which
the court ruled constituted an investment contract.
Considering that the regulator still has a long way to go to prove
which institutional sales were made to domestic investors (the only
ones the SEC has jurisdiction over), it may settle with Ripple
rather than prolong a case it may eventually lose. Featured
image from Unsplash, chart from Tradingview.com
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