Insights from Crypto Lawyer John Deaton
Prominent cryptocurrency attorney John Deaton recently shared his perspective on the ongoing United States Securities and Exchange Commission (SEC) vs. Ripple lawsuit, shedding light on the potential outcomes and implications. Deaton firmly believes that a settlement of $20 million or less would mark a significant legal victory for Ripple, debunking the notion of a 50/50 outcome.
Ripple’s 90/10 Advantage
In Deaton’s view, the lawsuit’s result significantly favors Ripple, with an estimated 90/10 advantage in their favor. He expressed these opinions in response to a post by Stuart Alderoty, Ripple’s chief legal officer, highlighting another legal setback for the SEC.
Community Support for a $20 Million Settlement
Deaton’s perspective aligns with the sentiment within the cryptocurrency community. In which generally sees a suggested $20 million settlement as a positive resolution. This assessment takes into account the potential repercussions of the XRP lawsuit and the broader regulatory landscape for digital currencies.
SEC’s Recent Legal Defeats
Stuart Alderoty’s post adds to the unfolding narrative, emphasizing the SEC’s recent legal defeats. In the case of the SEC vs. Govil, the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot request substantial disgorgement without demonstrating actual financial harm to investors. Essentially, no harm implies no penalty.
Background of the Ripple vs. SEC Lawsuit
The SEC initiated legal action against Ripple Labs in December 2020, alleging an unregistered securities offering through the sale of XRP Ripple’s native cryptocurrency. Judge Analisa Torres’s precedent-setting decision determined that XRP was not a security when traded on the secondary market. It charges against Ripple executives were reduced during the case’s progression.
Upcoming Developments
Judge Torres has recently approved an order for the SEC and Ripple to propose a briefing schedule addressing institutional sales of XRP, which pertains to the breach of securities laws. The parties have been instructed to provide a joint briefing schedule no later than November 9.
