In a recent report, a crypto law expert, John Deaton, suggested that Ripple Labs might not reveal an IPO or the settlement conditions it made with the SEC during the forthcoming “community celebration” it planned to organize in September to celebrate its win over the United States Securities and Exchange Commission (SEC).
Ripple Labs reportedly considered its victory over the SEC a huge milestone worth celebrating. In line with this thought, the Crypro platform has announced its plans to hold a community celebration on Sept. 29 in New York. According to the report, Brad Garlinghouse, the chief executive officer of Ripple Labs, announced the potential celebration on August 28 during a post on the firm’s official page.
In addition, many crypto enthusiasts are speculating the likelihood of Ripple revealing an IPO or the settlement it agreed with the SEC. However, an American crypto lawyer who has been following the lawsuit between the SEC and Ripple Labs since 2020 when it began remarked that speculators’ thoughts might not hold as Ripple may refuse to reveal any IPO or the SEC’s settlement during the upcoming event.
Deaton Said The SEC Won’t Approve Ripple’s IPO Now
Explaining his point of view, John Deaton stated that he believed the crypto platform would not announce any IPO or settlement with the SEC primarily because of the current regulatory challenges it is facing from regulators regarding its operations and products.
Additionally, the lawyer expressed that the US SEC is still trying to pin a lasting injunction that would give it oversight regarding the sales of XRP tokens to institutional investors in the future against Ripple Labs. Furthermore, he stated that the government agency is also trying to place the same injunction against the top executives of Ripple Labs, including Brad Garlinghouse and Chris Larsen, the CEO and the Board Chairman, respectively.
In addition, the continued challenges that Ripple Labs struggles against make it doubtful for the SEC to endorse an IPO for Ripple, given that the SEC is the only authorized government agency to let any business in the US go public. And if the friction between the two entities continues, it is likely that the regulator will not approve an IPO for Ripple any time soon.
Concerning the likelihood of Ripple Labs and the SEC reaching a complete legal settlement, the crypto law expert believed none can be reached between the two bodies anytime soon. Deaton added that any possible settlement between them would rely heavily on the court verdict of another ongoing lawsuit between the SEC and Coinbase exchange, and until the case is settled, Ripple and the SEC may not reach a settlement.
The SEC Vs. Ripple Labs Legal Fight Not Over Yet
The new set of controversies began when Judge Analisa Torres dished out a mixed verdict on the case between the SEC and Ripples, as earlier reported. In her ruling, she declared XRP as a non-security token but also permitted the SEC to file for summary judgment on the institutional sales of XRP by Ripple, however, she denied claims on other forms of XRP sales presented by the SEC.
In her verdict, she ruled that the programmatic sales of XRP by Ripple and other sales conducted by Ripple’s executives, Garlinghouse and Larsen, did not match the criteria for investment contracts. Hence, Judge Torres decreed that XRP does not meet the Howey standard of an investment contract, meaning it is not a security token.
However, it is important to understand that the legal brawl between the SEC and Ripple Labs is not over yet. A report showed that on August 9, a pretrial scheduling court order, preparing Garlinghouse, Larsen, and Ripple for an appearance before the jury for trial, was filed recently.
In addition, Jurge Torres scheduled a tentative trial between April 1 and June ending. Also, the SEC reportedly filed for an interlocutory appeal on August 18, showing that the commission is not retiring from the lawsuit yet.