Crypto-friendly lawyer John Deaton said there would be no IPO or SEC settlement announcement during Ripple’s upcoming celebratory party.
As blockchain startup Ripple prepares to celebrate its recent legal victory against the United States Securities and Exchange Commission (SEC), speculation about the odds of a full settlement with the regulatory body remains high. Many also muted the idea that Ripple would announce its plans to go public on a U.S.-based stock exchange during the party.
However, crypto-friendly lawyer John Deaton, who also runs a crypto-focused law firm, believes such outcomes are improbable. In a Sunday tweet, Deaton argued that at the upcoming Ripple party, scheduled for September 29, there would be “no announcement of an SEC settlement or an initial public offering (IPO) either.”
I have ZERO insider information. With that said, let me tell you that at the @Ripple Proper Party there won’t be an announcement of a settlement. See why I say that below ?
There won’t be an announcement of an IPO either. Who approves an IPO? That’s right: the @SECGov. The SEC… https://t.co/kBz2WxPfnI
— John E Deaton (@JohnEDeaton1) September 3, 2023
Deaton recalls that the SEC is still at loggerheads with Ripple Labs despite a partial court victory granted to the crypto-native company. The SEC is seeking a permanent injunction against Ripple Labs concerning the future sale of XRP to institutional investors and also hopes to secure a similar injunction against Ripple CEO Brad Garlinghouse and Chairman of the Board Chris Larsen.
Deaton said the ongoing legal tussle makes it increasingly impossible for the SEC to approve a Ripple IPO. Only the SEC has the constitutional right to allow a U.S. company to go public, and the agency is unlikely to grant its blessing to Ripple under current circumstances.
Will Ripple Settle with the SEC Before the Celebratory Party?
A complete legal settlement between Ripple and the SEC is also out of the picture before the company’s upcoming party, according to Deaton. The crypto-seasoned lawyer believes the only way for the warring parties to settle is if the Judge handling Coinbase’s separate case against the SEC accepts a motion to dismiss (MTD) filed by Coinbase in the past month.
Coinbase told the court that bid and sell transactions of crypto tokens on its platform did not constitute securities transactions, a case the SEC has strongly argued against. Hence, according to Deaton, until that separate issue is resolved and potentially applied to the SEC case against Ripple, a settlement even before the end of the year remains out of the cards.
In either case, Ripple’s celebratory party will likely still be held on September 29, marking a big moment for the XRP community after a two-year-long legal battle. In a July ruling, U.S. District Judge Analisa Torres declared XRP a “non-security,” paving the way for retail trading of XRP to resume on top U.S. exchanges.