XRP News Today: Ripple SEC Lawsuit May Settle With 60% Penalty Reduction

The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a critical juncture, with pro-XRP lawyer John Deaton offering insights into the potential resolution of the lawsuit. The SEC has proposed a settlement that would reduce Ripple's penalty from $125 million to $50 million and remove an injunction that restricts Ripple's activities. This development comes as Deaton estimates a 70% chance that Judge Analisa Torres will approve the joint motion, which could bring legal clarity to the XRP issuer.

Deaton's prediction is grounded in the current legal landscape and the progress made in the negotiations between Ripple and the SEC. The lawyer's optimism is based on the fact that both parties have shown a willingness to reach a settlement, which could potentially end the lawsuit. This would be a significant development for Ripple, as it has been embroiled in legal battles with the SEC since 2020. The lawsuit has created significant uncertainty for the company and its investors, and a resolution could provide much-needed clarity.

The proposed settlement would see Ripple pay a reduced penalty of $50 million, which is a significant reduction from the initial $125 million. This reduction could be seen as a victory for Ripple, as it would allow the company to avoid a lengthy and costly legal battle. However, the removal of the injunction is also a crucial aspect of the proposed settlement. An injunction would prevent Ripple from engaging in certain activities, which could have a significant impact on its business operations.

Judge Torres, however, has pushed back against the proposed settlement, citing that the SEC and Ripple have not provided a sufficient legal justification for reversing her previous decisions. Deaton explained that a judge cannot simply reverse an order without serious justification, especially after 4.5 years of work and resources poured into this case. 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.

The potential resolution of the lawsuit has also been met with skepticism from some quarters. Some have accused Deaton and Fred Rispoli of being overly optimistic about the chances of a settlement. However, Deaton has defended his prediction, stating that it is based on a thorough analysis of the legal landscape and the progress made in the negotiations. He has also pointed out that the SEC's proposal to reduce the penalty and remove the injunction is a positive sign that both parties are willing to reach a settlement.

If the judge approves the settlement, the case would finally be settled and closed. 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, and 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.