The lengthy court dispute between Ripple and the SEC had conflicting outcomes. Rather than paying $2 billion, Ripple settled the XRP security dispute for $125 million. US institutions cannot purchase XRP, even though Ripple can operate internationally!
The saga has reportedly taken a new turn, though, with pro-crypto lawyer John Deaton accusing SEC lawyers of deliberate misconduct, according to the most recent update. The prominent member of the XRP community, Deaton, has advocated for the sacking of the SEC’s legal team, claiming that they acted unethically throughout the case. In the crypto world, his remarks have sparked ongoing discussions, especially while people are still processing the final verdict.
SEC Lawyers Allegedly Exhibits Misconducts
John Deaton asserted in a recent YouTube video that the legal team representing the SEC purposefully deceived the judge in the Ripple dispute. He was upset over what he saw to be obvious wrongdoing and said that those who were accountable should suffer dire repercussions including job termination. Despite expressing regret for misrepresenting XRP, the SEC’s regulatory strategy remains uncertain. Deaton said that the SEC’s activities were immoral and went beyond standard legal practice.
The XRP community, which has long opposed the SEC’s regulation of the cryptocurrency business, found resonance with Deaton’s remarks. His comments coincide with mounting rumors about the SEC’s potential to appeal the Ripple case verdict.
Ripple to Pay $125 Million Settlement If No SEC Appeal
The prolonged court case between Ripple and the SEC came to a close with a $125 million settlement. The SEC does not appear to be planning to file an appeal after Ripple was given a temporary stay on the financial part of the decision. Holders of XRP are keeping a careful eye on any actions by the regulator that would affect the token’s legal standing in light of the lack of an appeal.
The SEC might contest XRP’s designation as “not a security” in secondary market transactions if it were to file an appeal against the decision. By defining XRP’s regulatory position, this ruling has been a significant victory for Ripple and the larger cryptocurrency sector. But if the SEC appeals the ruling to a higher court, that certainty might be in doubt.
Final Thoughts
The Ripple-SEC case has been a landmark in the regulatory framework surrounding cryptocurrencies, with Ripple settling for $125 million instead of the anticipated $2 billion, which is a notable win for the company. However, the fact that U.S. institutions are still barred from purchasing XRP, despite Ripple’s ability to operate internationally, highlights the ongoing regulatory uncertainty in the U.S. crypto market.
This partial victory raises concerns about the future of cryptocurrency regulations in the U.S., where digital assets are still caught in legal ambiguities, particularly around their classification as securities.
John Deaton’s accusations of misconduct by the SEC legal team add a layer of controversy to the case, stirring more debate within the XRP community. His claims that the SEC’s lawyers acted unethically resonate with a broader dissatisfaction among crypto advocates over the regulator’s approach.
If the SEC appeals the case, the progress made in clarifying XRP’s legal status could be jeopardized, potentially sending Ripple and the crypto industry back into regulatory uncertainty. Overall, while the settlement provides some relief, the potential for further legal battles keeps the future of XRP and broader cryptocurrency regulations in flux.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.