Deaton Debunks New Settlement Rumors

Deaton says he is willing to bet that the settlement rumor is false.

CryptoLaw founder attorney John E. Deaton has debunked the widespread rumor of an upcoming settlement in the lawsuit between the Securities and Exchange Commission (SEC) and Ripple.

Yesterday, Blockchain Daily, a crypto news outlet, took to Twitter to announce an unconfirmed report about a settlement in the SEC vs. Ripple lawsuit. According to the news outlet, the settlement is reportedly scheduled for May 8.

XRP Enthusiasts Think It’s a FUD, Deaton Reacts 

Interestingly, XRP community members did not seem excited about the rumor. Instead, they called on the team behind the Twitter handle to delete the tweet and stop spreading FUDs (Fear, Uncertainty, and Doubt).

Why are you posting FUD?

— TheFutureisHere (@SpaceDoggosNFT) May 1, 2023

The report has prompted reactions among XRP community members, with attorney Deaton, who represents thousands of XRP holders as a friend of the court (amicus curiae), commenting on the development.

A few minutes after the news started making the rounds, Deaton debunked the rumor, saying he would bet the report was false. According to Deaton, the legal teams of Ripple and the SEC can decide to meet anytime to discuss the terms of a settlement. 

However, it does not make sense to the CryptoLaw founder that the duo would choose a date for a meeting scheduled in a week and still leak the information to the public.

I’m willing to bet this is false. The SEC lawyers and Ripple lawyers could meet anytime they so desire. I don’t think they would pick a date a week from now and then leak it out. https://t.co/pMeaf0FJqd

— John E Deaton (@JohnEDeaton1) May 1, 2023

In a follow-up tweet, attorney Deaton said, “This is not how a settlement happens.” Deaton reiterated that a settlement would likely happen after Judge Analisa Torres rules on the case. 

He added that the SEC would make moves to settle “only if Ripple gets a big victory.” Per the outspoken lawyer, the SEC Chair Gary Gensler will try to settle if Ripple wins big in the case to “save face and get a political win through settlement.” 

Not New

This is not the first time that a rumor about a settlement in the SEC vs. Ripple lawsuit is making the rounds. However, these reports are usually debunked by top stakeholders familiar with the case.

As reported by The Crypto Basic, Cardano founder Charles Hoskinson noted last year that SEC and Ripple would settle on December 15, 2022. However, the rumor, fueled by Hoskinson, was debunked by Fox Business journalist Eleanor Terrett, leading to an exchange of words between members of the XRP and Cardano communities.