Judge Pushes Back on Ripple-SEC Deal – John Deaton Says 70% Chance of Settlement

Ripple vs SEC Nears Conclusion, But Judge Torres Isn’t Convinced Yet
The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new turn. Pro-XRP lawyer John Deaton recently broke down the situation, explaining why Judge Analisa Torres is hesitant to approve a proposed settlement.

What’s the Settlement Proposal?
According to reports, the SEC has agreed to reduce Ripple’s penalty from $125 million to $50 million and requested the court to remove the injunction preventing Ripple from violating securities laws. If approved, the case would be officially closed.

Why the Delay?
Judge Torres has so far refused to sign off on the deal. Deaton explains that the judge pointed out procedural errors: the legal rule cited was incorrect, and no “exceptional circumstances” were provided to justify undoing her previous ruling.

“This isn’t something a judge can simply reverse without a compelling reason,” said Deaton. After 4.5 years of litigation, the court demands clarity on why this reversal is in the public interest.

Is Settlement Still Likely?
Yes. Deaton estimates a 70% chance that the judge will eventually approve the deal — but not before both parties better justify it. The court wants to ensure that the agreement protects not only Ripple and the SEC but also the broader crypto community.

Why It Matters
If approved:

• Ripple’s financial penalty is lowered.

• The SEC avoids further risk on appeal.

• The case closes without changing Judge Torres’ earlier ruling that XRP is not a security in itself.

This outcome would be a win for Ripple and a significant precedent for future crypto regulation cases in the U.S.