John E Deaton, the well-known founder of Crypto-Law.us, took to Twitter to address the question on everyone’s mind: why would Ripple settle if they win the ongoing legal battle with the Securities and Exchange Commission (SEC)?
Deaton clarified that he never suggested Ripple would agree to the same settlement terms as they would have two years ago. The decision to settle, if at all, would depend on the ruling itself.
Responding to a query about why Ripple would want to settle after a big win, Deaton playfully remarked, “I would tell Gaaaaaaaary to hop a Husky.”
He went on to raise several thought-provoking questions. Would cryptocurrency exchanges like Coinbase and Kraken immediately relist XRP tokens or wait for a potential appeal?
Would Ripple partner Bank of America be comfortable with the decision, or would they hold off until the SEC’s appeal process concludes? Deaton reminded his followers that the SEC could file a notice of appeal and withdraw it later, adding an element of uncertainty to the situation.
Deaton presented a hypothetical scenario: if the SEC were to offer Ripple a statement declaring that future XRP sales are not securities and refrained from appealing in exchange for a $50 million settlement, he believes Ripple CEO Brad Garlinghouse would readily accept.
The immediate return of liquidity to the United States, coupled with increased certainty, would be a significant advantage for Ripple.
Ultimately, Deaton emphasized that if Judge Torres rules in the company’s favor and enables the swift return of liquidity to the U.S., it would alleviate concerns for American businesses using XRP and potentially reshape the narrative surrounding Ripple’s legal battle with the SEC.
Deaton Community Shares Views On XRP & Ripple-SEC Case
Community members of Deaton have expressed their thoughts on the ongoing case in response to a tweet. One community member stated that regulators are people and, therefore, political.
They suggested that protocols would be a better option for investors. Another member questioned whether the absence of a ruling this month would indicate something abnormal. They also wondered whether Torres needed more time after another 30 days.
A third community member made it clear that they had no intention of selling their XRP. They expressed a strong conviction to ride it out until the wheels fall off, emphasizing that it was a ball or fall situation for them.
Others in the community suggested that Ripple may want to establish a constructive relationship with the regulator going forward, regardless of the case outcome.
They speculated that a negotiated outcome might be a way to begin that process. Ripple, as per reports, plans to go public and will require assent from SEC.
Related Reading | Bitcoin’s Adoption Boost MicroStrategy’s Growth By 166%- Report