According to Cointelegraph, Pro-XRP lawyer John Deaton has explained the potential steps Ripple and the United States Securities and Exchange Commission (SEC) could take towards a settlement, emphasizing the importance of the ongoing Coinbase vs. SEC lawsuit. Deaton notes that if the judge in the Coinbase case grants the motion to dismiss, it could suggest that token sales on the exchange do not fall under U.S. securities laws, setting the stage for a possible Ripple-SEC settlement before the end of the year.
If the motion to dismiss is approved, the SEC's ability to appeal would be significantly limited, making a settlement a reasonable choice. Deaton mentioned that even if an appeal were feasible, the SEC's authority would be weakened. Ripple's recent filing contends that the agency has deviated from established legal perspectives, especially when applying the Howey test to XRP token sales.
The SEC had filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020, leading to XRP's delisting from several exchanges. However, after a positive ruling in July, numerous exchanges expressed their plans to relist the token.
