Attorney Reveals The Move That Will Settle XRP Vs SEC Lawsuit
The SEC and Ripple are still going hard at each other in the lawsuit over the legal status of XRP. There is not yet room for both parties to reach a settlement according to attorney John Deaton.
The SECs antics cancels the option for settlement
Deaton, who represents XRP supporters, made the statement in a recent tweet. He was responding to a question on whether a settlement was likely.
Yassin Mobarak, the founder of digital-focused equity capital firm Dizzer Capital, asked if the closing of expert discovery could lead to both parties opting to settle if they believed their case was not strong enough. He reasoned that at this stage, both sides have a good idea of each other’s strengths and weaknesses.
In response, Deaton stated that serious settlement talks were not likely as the SEC had so far failed to hand over documents that court rulings have directed it to. The SEC’s failure to comply means that it is probable Ripple’s legal team does not know the full picture of the strengths and weaknesses of the SEC’s case.
Ripple considers its case to be stronger than the SECs
Meanwhile, Ripple’s legal team is showing no indication of considering a settlement. If the comments of Ripple’s General Counsel Stuart Alderoty, as well as CEO Brad Garlinghouse, are to be considered, the fintech company considers itself to have the upper hand. Alderoty recently revealed on Twitter that the unsealed memos only prove that XRP does not constitute a security.
Garlinghouse concurred with him, adding that with the unsealed memo’s “the truth is now out for everyone to read.”
The memo’s in question showed that Ripple sought legal counsel before initiating finalizing its business plan for XRP in 2012. Sent to Jed McCaleb and Jesse Powell, Perkins Coie LLP international law firm advised Ripple not to sell ‘NewCoin’ via what seems like an ICO as it would result in classification as a security.
According to Attorney James K. Filan’s analysis of the latest development, the unsealing of the memo is overall favorable to Ripple and its executives.