​Ripple offers to pay up to $250 million to settle the dispute with SEC

What’s new? CryptoLaw CEO and attorney John Deaton said that Ripple is willing to pay between $100 million and $250 million if the US Securities and Exchange Commission (SEC) publicly announces that all current and future sales of the native token XRP will not be recognized as securities transactions. Ripple’s attorney wrote this on his Twitter account.

IMO Ripple would pay $100-250M in a settlement IF the SEC agreed publicly that current and future sales of XRP are not securities. The SEC is NOT going to agree to that in the middle of its war 🆚 crypto. Judge Torres could provide clarity on secondary sales which isn’t appealed. — John E Deaton (@JohnEDeaton1) February 21, 2023

What other statements have been made? According to Deaton, the regulator will not accept this proposal because it is “in the middle of its war against crypto.” In addition, the judge in the case, Analisa Torres, could clarify the issue of secondary sales of the token, which has not yet been appealed.

What is known about Deaton? CryptoLaw was created to inform legislative and regulatory changes in the United States regarding the sphere of digital assets. Deaton represents Ripple and the owners of their native token XRP in court against the SEC. The attorney has played an active role in the current lawsuit, filing a brief opposing the regulator’s motion for summary judgment on behalf of Ripple supporters.

That said, Deaton previously allowed the possibility that the lawsuit would end by April-May of this year.

What is known about Ripple? It is a payment protocol for exchanging currencies and making transactions. It is used by government financial institutions in Australia, Canada, and Israel. XRP is used to provide liquidity, acting as a bridge for international transfers, allowing them to be completed in seconds and times cheaper than solutions of traditional services. As of February 23, the asset ranks sixth in the cryptocurrency rating with a capitalization of $19,9 billion and is trading at $0,3898, having gained 0,67% in 24 hours, according to Binance.

In 2020, the SEC filed a lawsuit against Ripple Labs, its CEO Brad Garlinghouse and chairman Chris Larsen. The Commission considers raising $1,3 billion through the sale of XRP tokens to be unregistered securities transactions, a gross violation of US law.

Garlinghouse said in June 2022 that if the company lost the case, it would continue to operate in another jurisdiction. In his opinion, if it loses, other crypto projects would also be at risk and would be forced to move their business outside of the United States. However, the head of the company is confident that the case will not go to a jury trial because, in his view, the judge has enough evidence to reach a verdict alone.

For how Ripple’s victory could affect the XRP rate, read GetBlock Magazine’s special feature.