Deaton reiterates that he expects the SEC case against Ripple to make it to summary judgment.
Attorney John Deaton has asserted that there will be no settlement in the US Securities and Exchange Commission case against Ripple till after Judge Analisa Torres gives her summary judgment decision.
The friend of the court in the over two-year-long legal battle said this in a tweet yesterday as part of his predictions for 2023.
1) The @Ripple case does not settle until AFTER we get a decision from Judge Torres;
2) An exchange (maybe more than one) is sued for selling unregistered securities;
3) investigation into SBFraud meetings uncovers bad 💩;
4) Gensler resigns before the eoy.
— John E Deaton (@JohnEDeaton1) January 12, 2023
Elaborating on his prediction, Deaton explains that both parties could enter an out-of-court settlement after the court ruling to stay a potential jury trial and potential appeals.
Some people are confused about my prediction that the Ripple case doesn’t settle until AFTER Judge Torres renders a decision. A settlement could occur after which would eliminate any potential jury trial and also eliminate any potential appeal. https://t.co/KnT6t8lwaa
— John E Deaton (@JohnEDeaton1) January 13, 2023
The prediction supports Deaton’s previous stance, where he argued that the case would make it to a court ruling, as opposed to most XRP holders in a poll he conducted, who believed a settlement was likely before summary judgment.
At the time, the lawyer expressed that he no longer expected the SEC to seek a settlement to keep the Hinman documents private. According to Deaton, despite recent efforts by the SEC in omnibus motions to keep the Hinman documents sealed, he believes that the SEC, which already agreed to a court order to hand them over to Ripple, is ready to risk the documents going public.
In addition, the CryptoLaw founder believes that the SEC chair Gary Gensler is willing to gamble on an unfavorable SEC outcome. Furthermore, he added that the regulators had received a confidence boost with the win against LBRY and the FTX collapse.
Notably, Deaton believes that the ruling in the SEC case against Ripple will be the only clarity the emerging markets get until the next poll. He said this in light of the negative sentiment toward crypto in Congress and the House’s polarized nature that makes it less likely to pass many bills.
Consequently, the crypto community is hoping for a court ruling in favor of the blockchain enterprise company as it sees a “bloodbath” in the event of a Ripple loss, according to FOX Business’s Charles Gasparino. Notably, the senior correspondent believes that the SEC could force all crypto except Bitcoin to register as securities.
in July 2022. Deaton predicted that SEC is going to sue any US exchange by the end of the year, which today came true after SEC charges Gemini for the sale of unregistered securities.
— CryptoLaw (@CryptoLawUS) January 12, 2023
The SEC recently filed lawsuits against Genesis Trading and Gemini for allegedly engaging in the sale of unregistered securities. Gemini’s Cameron Winklevoss has described the lawsuit as counterproductive as the crypto exchange is locked in a battle with Genesis to recover the funds of its earn program customers who have been unable to withdraw their assets on the crypto exchange for over 2 months. Notably, as part of its earn program, it loaned customer funds to Genesis to earn yield. However, Genesis, faced with a liquidity crunch, has paused operations.
Pundits expect a ruling in the Ripple case in Q1 2023.