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Legal expert discusses Ripple-SEC settlement approach influenced by Coinbase case.

Pro-XRP lawyer John Deaton, who represents multiple XRP tokenholders, has provided insights into the potential path for a settlement between Ripple and the U.S. Securities and Exchange Commission (SEC).

Against the backdrop of speculation surrounding a resolution, Deaton underscored the importance of the ongoing legal battle between Coinbase and the SEC.

He noted that if the judge presiding over the Coinbase case grants the exchange’s motion to dismiss,

it would establish that token sales on the platform are not subject to U.S. securities regulations.

However, this ruling would not extend to crypto staking activities.

“The only way Ripple and the SEC (could) settle before the end of the year is if Judge Failla grants the Coinbase motion to dismiss or partially grants it – finding token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws”

Approval of the motion to dismiss in the Coinbase case would significantly limit the SEC’s ability to pursue an appeal,

creating a favorable environment for a potential settlement between Ripple and the SEC.

Lawyer John Deaton emphasized that even if the SEC were able to appeal in this scenario, its authority would be weakened.

This development adds momentum to the prospects of a resolution in the Ripple-SEC dispute.

Ripple vs SEC

Ripple’s recent filing on September 1 highlighted that the summary judgment did not address the legal basis for the interlocutory appeal.

Ripple’s opposition contended that the SEC had deviated from established legal perspectives,

specifically in relation to the application of the Howey test to XRP token sales.

The SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020,

leading to the delisting of XRP from several exchanges to avoid potential legal complications.

However, following a favorable ruling by Judge Analisa Torres in July,

many exchanges expressed their intention to relist the token.

In 2023, the SEC has been actively pursuing various cryptocurrency firms for alleged securities violations,

including Binance and Coinbase.

Notably, on August 29, asset manager Grayscale achieved a legal triumph over the SEC through an appeal that resulted in a mandated review of its application for a spot Bitcoin exchange-traded fund (ETF).

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