In a recent Twitter exchange, Bill Morgan, a crypto advocate, weighed in on legal expert John E. Deaton’s analysis of the SEC’s ongoing legal battles with Ripple and other crypto entities. Morgan characterized the SEC’s actions as a “death struggle” against the entire crypto sector, except for Bitcoin and Ethereum.
Asserting that the SEC shows no signs of reaching a settlement with Ripple or Coinbase, Morgan wrote :
Agree 💯 I was once a believer that there could be a settlement but the SEC wants a death struggle with all of crypto except Bitcoin and maybe Ethereum. It won’t settle with @Ripple or @coinbase. It is a sick agency. https://t.co/DlVuIeBDeO
— bill morgan (@Belisarius2020) September 3, 2023
John E. Deaton, who has been closely monitoring the SEC’s actions, had earlier outlined the conditions that could potentially lead to a settlement between Ripple and the SEC. Deaton indicated that a pivotal ruling in the Coinbase motion to dismiss (MTD) could be a game-changer.
Specifically, he noted that if Judge Failla were to partially grant the Coinbase MTD—by ruling that token sales on exchanges do not fall under U.S. securities laws while allowing the staking component to proceed—it could force a strategic shift in the SEC’s approach. This shift would be particularly significant given the leadership of SEC Chairman Gary Gensler, who has been a vocal critic of the crypto industry.
Deaton also touched on the broader implications of the case, stating that if it were to escalate to the level of the Supreme Court, it could have a sweeping impact on the authority of all federal agencies, including the SEC. He was skeptical that the Solicitor General would permit an appeal of this magnitude.
Deaton further quashed any hopes for a Ripple IPO, stating that the SEC would have to offer approval for such a move, which is highly unlikely given the SEC’s current stance. He also mentioned that if the SEC wins at trial, the case could extend to Ripple CEO and Board Chairman Brad Garlinghouse, adding another layer of complexity to the legal battle.
This sentiment is echoed by market observers who believe the SEC’s tightening enforcement grip is causing hopes for a settlement to wane. The XRP community also shares the view that the SEC is intent on “stopping Ripple by any means necessary”.
The ongoing legal disputes involving Ripple and Coinbase against the SEC have significant implications for the broader cryptocurrency market. A favorable ruling for Coinbase by Judge Failla, and a decision by Judge Torres to decline the SEC’s appeal, could seriously question the SEC’s credibility.
