Settlement or Dismissal? Deaton Explores Three Possible Outcomes of SEC Legal Battle
The ongoing legal battle between the U.S. Securities and Exchange Commission and Ripple Labs has been one of the most closely watched cases in the cryptocurrency world. As the case continues to evolve, experts and industry insiders are speculating on the possible outcome and its broader implications for the future of cryptocurrency regulation in the United States. In an interview with Thinking Crypto, Cryptocurrency supporter, lawyer and crypto law founder John Deaton weighed in on the matter and proposed roughly three scenarios
The appeal continues
One avenue for SEC v. Ripple is that the appeals process could continue. This would involve the SEC insisting that XRP is a security, a position they have long held. Although Ripple has repeatedly challenged this view, extending the appeal could lead to a protracted legal battle that would leave the cryptocurrency industry shrouded in uncertainty.
SEC dismisses appeal, reaches settlement
A more likely scenario is that the SEC ultimately rejects the appeal and Ripple resolves the case by paying the $125 million fine imposed by the court. This outcome will bring some closure to the case and provide clearer guidance on the status of XRP. This is the most likely scenario, especially given the current political climate where President Trump has announced his vision to make the United States the “cryptocurrency capital of the world.”
SEC drops appeal, shifts focus
Another possibility is for the SEC to drop the appeal entirely and not enforce the $125 million fine. In this case, Ripple would be free to continue operating without the threat of imminent legal action.
With leaders like David Sacks serving as White House AI and cryptocurrency czar, the U.S. government may seek to create a more favorable regulatory environment that encourages innovation rather than stifles it.
