Ripple lawyer: "The SEC should fall on the sword"
What looked like a resolved legal nightmare is getting an unexpected turn.
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What looked like a resolved legal nightmare is getting an unexpected turn. After more than four years of legal fighting, Ripple Labs and the U.S. securities regulator SEC had reached a deal: Ripple would pay only $50 million of the original $125 million penalty, and the SEC would withdraw its appeal of the 2023 ruling. The crypto market breathed a sigh of relief until Judge Analisa Torres spoiled the party.
In a decision that hit the crypto community like a bomb, Torres rejected the proposed settlement. Her argument: no extraordinary grounds were raised to revise the prior ruling, and the procedure was not properly followed. Result: the XRP legal wrangle drags on.
Deaton: “The SEC must fall on the sword”
Ripple lawyer John Deaton didn’t mince words in a recent live broadcast: the SEC should publicly acknowledge that its earlier accusations were unfounded. He says a workable solution is possible only if the restructured regulator actively collaborates with Ripple, pointing to upcoming crypto legislation in Congress.
Deaton says the judge will only sign off on a new proposal if the SEC can convincingly show that XRP sales by Ripple caused no harm. On the contrary: the current ban hampers Ripple’s business and blocks institutional partnerships. “I think the SEC needs to fall on the sword,” Deaton said. A tough message, but one echoed in the community.
New faces, new direction?
Under Donald Trump’s presidency, who has taken a notably pro-crypto stance in his campaign, the SEC has changed course. With the departure of former chair Gary Gensler, several lawsuits have been dropped, including those against Consensys, Coinbase, and Uniswap.
For Ripple, that could mean a light at the end of the tunnel. Under new chair Paul Atkins, a crypto task force has been formed with the goal of establishing a clear, rational regulatory framework for digital assets. Attorney Fred Rispoli View post on X says a renewed request will be filed within two to three weeks. The judge Torres’ decision could come by mid-June.
Market remains tense: XRP under pressure
For now, the uncertainty is weighing on traders. XRP fell five percent after the settlement was rejected and was trading around $2.39 at the time of writing. That’s a drop from the week’s high of $2.62, when the breakthrough hope still loomed.
Yet the story isn’t over. Ripple’s global strategic acquisitions and XRP whales’ activity keep bullish signals for the near term. Stay sharp, because in crypto, even a pullback can just be the setup for a explosive comeback.
