Top U.S. Attorney Highlights Possible Scenarios That Could Bring A Settlement Between Ripple and SEC

Deaton Highlights Possible Scenarios That Could Bring A Settlement or a decision Between Ripple and SEC.

The likelihood that there could be a settlement in the Ripple vs. SEC lawsuit has been largely debated. While some people believe the parties could reach a settlement before the expected next year, others have dismissed the possibility of a settlement. 

Attorney John Deaton, the founder of CryptoLaw, is among those who believe the lawsuit between Ripple and the SEC will likely end in a settlement. For Deaton, Judge Analisa Torres’ decision on SEC’s opposition to the order that it should surrender the draft of William Hinman’s 2018 speech will determine whether a settlement would happen in earnest. 

Deaton’s Analysis of Possible Settlement in the Suit

In a lengthy Twitter thread, attorney Deaton highlighted the possible scenarios that could dictate a settlement in the Ripple vs. SEC lawsuit. 

Recall that after Judge Netburn dismissed the SEC’s motion that Hinman’s documents are protected by attorney-client privilege, the commission filed an objection to the ruling before Judge Torres, hoping that the court would reconsider its decision. 

After filing the objection, Judge Torres is yet to decide on the issue. Explaining what could bring about a settlement in the suit, attorney Deaton said if Judge Torres overturns the previous ruling made by magistrate Netburn, the agency would not call for a settlement. 

Interestingly, Deaton does not think Judge Torres would overturn the ruling previously made by her colleague on the matter. 

“Scenario One:

SEC receives a victorious ruling from Judge Torres, overturning Judge Netburn’s Order that the SEC must turn over the emails, comments, drafts and edits.

Result: No settlement. Summary Judgment Decision.

Odds of Scenario One happening: 5%.”

For the second scenario, attorney Deaton said if Judge Torres still rules that the SEC should surrender Hinman’s documents to Ripple, the Securities and Exchange Commission will request an interlocutory certificate to file the case in the second circuit. 

Both attorney Deaton and defense lawyer James K. Filan do not think Judge Torres will grant the SEC’s request for an interlocutory certificate. 

“Scenario Two:

Judge Torres Affirms Judge Netburn’s decision and orders the documents turned over.

Result:

The SEC seeks certification for an interlocutory appeal to the 2nd Circuit. I don’t believe Judge Torres will certify. The SEC seeks a Writ of Mandamus.”

Deaton could not tell exactly when the whole scenario would happen. However, he thinks if Judge Torres makes a ruling on Hinman’s issue as soon as possible, putting an end to the SEC’s delay tactics, there is a tendency that the SEC could settle with Ripple before the end of the year. 

A lot depends on timing. If Judge Torres’ ruling that the documents must be turned over is very soon, it’s possible the SEC’s delay tactics could run out of time by the end of the year, forcing a settlement. If her ruling takes a long time, the daly tactics run the 🕰

— John E Deaton (213K Followers Beware Imposters) (@JohnEDeaton1) September 11, 2022

Deaton: SEC Will Rather Settle Than Surrender Hinman’s Documents

The CryptoLaw founder is one person who has always believed that Hinman’s documents will never see the light of day. He stated earlier this year that the SEC would rather settle than surrender the documents to Ripple. Since Deaton made the comment, the SEC has been fighting relentlessly to prevent the document from being used in the lawsuit.  

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