Attorney Deaton Reiterates That Ripple and SEC Will Not Settle

Pro-crypto lawyer John Deaton has reiterated that there will be no settlement in the lawsuit between Ripple and the SEC. 

In a tweet today, attorney Deaton made reference to a January 1 tweet where he noted that SEC chair Gary Gensler does not have a mindset of settling with the prominent blockchain company. 

Attorney Deaton noted in the New Year’s tweet that Gensler would not want to settle with Ripple because such a move would require him to publicly agree that XRP transactions, including secondary market sales, are non-securities. 

Similarly, Ripple will only settle with the SEC if the securities regulator agrees to provide clarity for XRP and declare the crypto asset non-security, attorney Deaton added. 

“I think a settlement [with] Ripple is not in Gensler’s mindset. I don’t believe he’s going to settle and publicly agree that ongoing and future XRP sales, including in the secondary market, are non-securities. And Ripple won’t settle unless the SEC so agrees,” said Deaton. 

Despite attorney Deaton asserting on January 1 that there will not be a settlement in the lawsuit, XRP community members have continued to ask him whether the parties will eventually settle before the final ruling. 

In response to the question, Deaton referred to an old tweet. On January 1 Deaton said both Ripple and the SEC will not settle until after Judge Analisa Torres rules on the case. 

It certainly wasn’t a popular tweet to start the new year, but I think it is clear that there won’t be a settlement between the SEC and @Ripple until after the judge rules, if ever. https://t.co/dnzkgkO012

— John E Deaton (@JohnEDeaton1) February 14, 2023

Deaton’s comment comes after a U.S. lawyer highlighted what the SEC stands to gain by settling with Ripple. 

It bears mentioning that the SEC has not had any issues settling with top crypto companies before and after the Ripple lawsuit. Earlier this month, cryptocurrency company Kraken agreed to pay a $30M fine and discontinue its staking service to settle the charges made by the SEC. 

In the Ripple case, the Securities and Exchange Commission seems confident that it would be declared the winner in the case and has refused to consider settling with the blockchain company.