Pro-XRP Lawyer Says SEC 'Pissed and Embarrassed,' Foresees Intensifying Legal Battle

While the court ruling in the Ripple Labs vs. U.S. Securities and Exchange Commission (SEC) is considered a landmark victory, John Deaton, a pro-XRP lawyer and the founder of Crypto Law, has predicted that the legal battle will intensify, given the financial regulator's feelings of being "pissed and embarrassed" by the way things unfolded.

Deaton, who was awarded the inaugural Defender of Freedom Award by the International Congress of Blockchain Legal Advisors for his role in the Ripple vs. SEC case, expressed his belief that the legal battle will be protracted and may extend over a year.

The Crypto Law founder also noted that "there has been a single serious conversation regarding a settlement between Ripple, Brad Garlinghouse, Chris Larsen, and the SEC," and a settlement may only be considered if Coinbase succeeds in its motion to dismiss the lawsuit filed by the financial regulator against it.

Deaton also emphasized that "The SEC is angry and embarrassed and seeks $770 million worth of compensation," explaining the complexities of the penalty phase, which involve various legal processes.

"What people need to understand is that the penalty phase is like a second case, necessitating more depositions, interrogatories, requests for the production of documents, emails, bank statements, contracts, ODL transactions, and so on," the lawyer explained.

"Ripple aims to significantly reduce the $770 million by attempting to exclude ODL transactions, cut salaries, expenses, costs, and so forth. The SEC initially sought $23 million from @LBRYcom. It took EIGHT MONTHS of additional litigation before the judge ultimately imposed a fine of $130,000. @jeremykauffman, for instance, was deposed again, and multiple briefs were filed," Deaton further said.

The final judgment might be available by next summer "at the earliest," according to Deaton, adding that it might take a full year before an appeal could be filed.

Moreover, Deaton noted that the SEC might be compelled to work on a potential settlement with Ripple Labs if Coinbase wins its case against the major Wall Street regulator.

However, he noted that until then, "Ripple will spend tens of millions of dollars on legal fees, fighting to significantly reduce the $770 million."

Earlier this week, another pro-XRP lawyer, Jeremy Hogan, said, "For all intents and purposes, the Ripple v. SEC case is over." Hogan said in a tweet, noting that while "important hearings will be held in the coming months (deciding a judgment of up to $770 million is, of course, important)," "YOUR (referring to the SEC) time for hand-wringing over this case is done."

"The SEC dismissed the rest of the case, so there will be no trial next year. The facts have been set - nothing new or surprising will be coming out. Which means the Court will be issuing a Final Judgment (probably) sometime next year. Only Ripple needs to worry about that," Hogan, who is a partner at the Hogan and Hogan law firm, further said.

On Monday, Judge Torres of the U.S. District Court in New York officially signed an order dismissing the charges brought by the SEC against Ripple's leading figures.