Prominent cryptocurrency attorney John Deaton has offered insights into the United States Securities and Exchange Commission (SEC) vs. Ripple lawsuit. He contends that a settlement of $20 million or less would constitute a significant legal triumph for the company.
In a recent post on X (formerly Twitter), Deaton strongly refuted the idea that the lawsuit’s result was an even 50/50 outcome for the SEC, claiming that it’s closer to a 90/10 advantage in favor of Ripple. Deaton’s remarks were prompted by a post from Stuart Alderoty, Ripple’s chief legal officer, highlighting another legal setback for the SEC.
Deaton’s viewpoint resonates with the sentiment in the cryptocurrency community, which generally views the suggested $20 million settlement as a positive resolution for Ripple. This assessment considers the potential consequences of the XRP (XRP) lawsuit and the broader regulatory environment for digital currencies.
The people who’ve argued that the SEC got a 50-50 victory in the @Ripple case are wrong. It was more like 90-10 in Ripple’s favor. If Ripple ends up paying $20M or less it’s a 99.9% legal victory. https://t.co/Xe6SYBiTCJ
— John E Deaton (@JohnEDeaton1) November 4, 2023
Stuart Alderoty’s post further adds to the storyline, pointing out that the SEC faced another defeat this week, continuing a series of setbacks. According to Alderoty, in the case of the SEC vs. Govil, the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot request a substantial disgorgement award without first demonstrating actual financial harm to “investors.“ In essence, it implies that if there’s no harm, there’s no penalty.
In December 2020, the SEC initiated legal action against Ripple Labs, accusing the firm of conducting an unregistered securities offering by selling XRP, its native cryptocurrency.
Ultimately, a precedent was established when Judge Analisa Torres determined that the asset was not a security when traded on the secondary market. Additionally, the case underwent significant changes as the charges against Ripple executives were reduced.
Related: Ripple to power Georgia’s central bank digital currency, the digital lari
Meanwhile, Torres has recently approved an order regarding the SEC and Ripple’s joint request to propose a briefing schedule to address institutional sales of XRP. This relates to the segment of the XRP lawsuit in which the company was determined to have breached securities laws. Torres instructed the parties to provide a joint briefing schedule no later than Nov. 9.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
