In a recent live broadcast, pro-XRP lawyer John Deaton dismissed claims of ongoing settlement talks between the SEC and Ripple amidst the SEC’s motion to compel financial statements. Deaton labeled the current legal proceedings as “scorched earth litigation.”
No Settlement Talk
Attorney Deaton firmly stated that, as of now, there are no ongoing discussions about a settlement between the SEC and Ripple. This declaration was based on the SEC’s recent motion requesting Ripple to produce audited financial statements from 2022 – 2023 and post-complaint contracts overseeing institutional sales.
Deaton said, “I don’t think there are any talks for a settlement. This is still scorched earth litigation even in the remedies stage,” stressing how intense the legal battle still is.
Possibility of Settlement In the Future
Talking about the chance of a settlement in the future, Deaton shared his thoughts. Although he currently says no talks are happening, he believes a settlement could happen later on. Deaton explained that the SEC might want to settle if they think they can get better terms compared to what a court decision might bring.
He said, “Maybe that will make them (SEC) come to the table because they can spin it versus getting another ruling that embarrasses them as an organization. I’m not saying a settlement can’t or won’t happen.
I’m just telling you it’s not happening today.” This means there’s a chance for an agreement, but right now, it’s not happening.
Figuring Out Fines and Legal Stuff
As the lawsuit progresses to the remedies stage, there’s speculation about the potential fines Ripple might face for alleged violations related to institutional sales. Deaton talked about the SEC being curious about Ripple’s money records and looking into contracts made after the complaint.
Deaton thinks Ripple might show that most institutional sales are okay, and the fine could be somewhere between $10 million and $100 million. He pointed out that Ripple might end up paying much less in fines than the big $200 million they spent on lawyers to defend themselves, as shared by Ripple CEO Brad Garlinghouse.
Looking Beyond the Verdict
Deaton’s perspective goes beyond the ongoing trial, exploring what might happen if there’s an appeal. He’s pretty sure that the Second Circuit, a higher court, will support Judge Analisa Torres’s decision to end the case early.
Deaton pointed out how strong Torres’s choices were regarding programmatic sales and how XRP is distributed. He believes these decisions would likely hold up even if there’s an attempt to appeal.