The post What’s Going On in the Ripple vs SEC Lawsuit? Pro-XRP Lawyer John Deaton Explains appeared first on Coinpedia Fintech News
The never-ending legal battle between Ripple and the U.S. SEC is back in the news — and pro-XRP lawyer John Deaton recently broke down exactly what’s happening.
What’s This Settlement About?
The SEC and Ripple have reached a proposed settlement. In it:
- The SEC wants to lower Ripple’s penalty from $125 million to $50 million
- The agency also wants the judge to remove an injunction (a legal order stopping Ripple from violating securities laws)
If the judge agrees to this, the case would finally be settled and closed.
But Judge Torres Pushed Back
Many thought Judge Analisa Torres would quickly approve the deal, but she surprised both sides.
According to Deaton, the judge told them:
- They cited the wrong legal rule
- They haven’t shown “exceptional circumstances,” a very strong legal reason — for why she should undo a decision she already made.
Deaton explained that a judge can’t simply reverse an order without serious justification, especially after 4.5 years of work and resources poured into this case.
Is a Deal Still Possible?
Yes. Deaton believes the judge will likely approve the settlement eventually, giving it about a 70% chance, but she’s demanding a better explanation first. Both sides now need to show how this deal serves both private interests (Ripple and SEC) and the public interest (protecting other crypto investors and companies).
They also need to convince her that settling now would save time, money, and resources for the courts and avoid risky appeals for both sides.
Why Does It Matter?
This case has been one of the most important for crypto regulation in the U.S. If the injunction is removed and the fine reduced:
- Ripple avoids a bigger penalty
- The SEC avoids risking a total loss on appeal
- The case officially closes without affecting Judge Torres’ earlier ruling that XRP itself is not a security in the U.S.
Deaton stressed that the judge’s past ruling would still stand, and crypto companies would still need to follow U.S. securities laws.
