The endless legal battle between Ripple and the US SEC is back in the news and pro-XRP lawyer John Deaton recently turned out exactly what is happening.
What is this arrangement about?
The SEC and Ripple have reached a proposed arrangement. In it:
- The SEC wants to reduce Ripple’s fine from $ 125 million to $ 50 million
- The agency also wants the judge to remove an order (a legal order that Ripple stops violating securities laws)
If the judge agrees, the case would finally be resolved and closed.
But Judge Torres pushed back
Many thought that judge Analisa Torres would soon approve the deal, but she surprised both parties.
According to Deaton, the judge told them:
- They called the wrong legal rule
- They have not shown ‘exceptional circumstances’, a very strong legal reason – why she would undo a decision she has already made.
Deaton explained that a judge cannot easily reverse an order without serious justification, especially after 4.5 years of work and resources cast in this case.
Is a deal still possible?
Yes. Deaton believes that the judge will probably approve the settlement, which gives it about a chance of 70%, but she first demands a better explanation. Both parties must now show how this deal serves both private interests (Ripple as SEC) and the public interest (other crypto investors and companies protect).
They also have to convince her that arranging time, money and resources for the courts would save and prevent risky calls for both parties.
Why does it matter?
This case has been one of the most important for Crypto Regulation in the US if the order is removed and the fine is reduced:
- Ripple avoids a greater punishment
- The SEC avoids a total loss on appeal
- The case officially closes without influencing the earlier judgment of Judge Torres that XRP itself is not safety in the US
Deaton emphasized that the judge’s ruling would still exist, and crypto companies would still have to follow the American securities laws.