Lawyer Updates XRP vs. SEC Outlook, Explains Why the Judge Won’t “Hurt Ripple”

Appearing on CryptoLawUS TV, lawyer John E Deaton shared his thoughts on the ongoing Ripple vs SEC lawsuit. Deaton does not believe there have been any serious settlement talks between Ripple executives Brad Garlinghouse and Chris Larsen and the SEC.

No End in Sight for Lawsuit

The SEC is seeking $770 million in disgorgement from Ripple and appears unwilling to settle at this time, according to Deaton. He believes the SEC wants to make an example of Ripple due to being “pissed and embarrassed” over the prolonged legal battle.

Deaton explained that the penalty phase of the case will be like a second trial, requiring more depositions, interrogatories, and document discovery. Ripple aims to drastically reduce the $770 million figure by excluding certain transactions and expenses from the calculation.

Potential for Reduced Disgorgement

In a follow-up post, Deaton expressed optimism that Ripple will succeed in greatly lowering the $770 million disgorgement amount. He noted this is not a fraud case, but rather a dispute over whether XRP transactions qualified as unregistered securities sales.

Deaton pointed to government agencies classifying XRP as a virtual currency, not a security, during the 2013-2019 timeframe. He also cited SEC staff being permitted to trade XRP themselves until 2019. With these facts, Deaton believes Judge Torres will reach an appropriate fine based on lack of clarity around XRP’s status, not try to ‘hurt Ripple.’

The lawyer provided an insightful update on the drawn-out Ripple vs SEC battle. With both sides digging in, the lawsuit may continue well into 2024 unless a pivotal event changes the landscape. But Deaton sees a reasonable chance for Ripple to mitigate the SEC’s massive disgorgement request.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of


Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.