Monday's dismissal of charges by the Securities and Exchange Commission (SEC) against Ripple executives has prompted conjecture regarding a hastened appeal or settlement in the ongoing SEC v. Ripple lawsuit. Attorney John Deaton suggested that an SEC defeat on appeal could potentially embolden other cryptocurrency firms to more vigorously resist unfavorable actions.
Deaton disputed the claim of an immediate appeal, made by Ran Neuner, stating that a penalty phase must precede it. However, he acknowledged that the dismissal might speed up proceedings, drawing parallels with the SEC v. LBRY case where the final judgment took eight months following summary judgment.
The attorney also highlighted Judge Torres' ruling, which applied the Howey Test to Ripple and XRP's circumstances. This ruling permits the SEC to argue that a loss on appeal pertains solely to these entities.
Ripple might employ strategies such as On-Demand Liquidity (ODL) sales and legitimate business costs to mitigate potential fines, according to Deaton's speculation. He cited LBRY's fine reduction from $23 million to $130,000 after a remedies hearing as a potential precedent. The now-cancelled April 2024 trial was set to address Ripple's potential violation of securities law through institutional sales of XRP, which could have resulted in a penalty of up to $770 million.
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