In the case between Ripple and the SEC, although Judge Torres ruled in favor of Ripple that XRP tokens do not constitute securities when sold on exchanges, the case between the two parties is not over yet.
“Ripple Will Reconcile With the SEC If a Decision Is in Favor of the Exchange in the Coinbase Case”
A lawyer who follows the case closely said there is a chance of a settlement before the end of the year, depending on the outcome of another case involving Coinbase, the largest U.S. cryptocurrency exchange.
John E Deaton, founder and managing partner of Deaton Law Firm, said in a tweet today that the only way Ripple and the SEC can reach an agreement in 2023 is Judge Katherine Polk Failla's request to dismiss (MTD) Coinbase's lawsuit against the SEC. He said he had to accept it.
In addition, he stated that determining that its sales on the exchange in a purchase/sale transaction are not within the scope of US securities laws and partially accepting it and allowing the staking part of the case to proceed could also enable a compromise between Ripple and the SEC.
The SEC accused Coinbase in June of selling unregistered securities products.
Deaton, who has also filed a class-action lawsuit against the SEC on behalf of XRP holders in the past, said that if Judge Failla rules in favor of Coinbase, or at least partially in favor of it, the SEC and its chairman, Gary Gensler, may be forced to change their approach to crypto regulation.
*This is not investment advice.
