Crypto Lawyer: $20M Settlement = 99.9% Win for Ripple
In the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, prominent cryptocurrency attorney John Deaton has weighed in on the potential implications of a settlement. According to Deaton, a settlement of $20 million or less would represent a significant legal victory for Ripple.
In a recent tweet on X (formerly Twitter), Deaton expressed his viewpoint, stating, “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.” Deaton’s perspective has resonated with many in the cryptocurrency community, who view a $20 million settlement as a favorable outcome for Ripple.
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
This assessment takes into account the potential consequences of the XRP lawsuit, as well as the broader regulatory environment for digital currencies. The SEC’s handling of the case against Ripple has faced scrutiny, and Deaton’s assessment underscores the company’s potential to emerge from the legal battle in a strong position.
Adding to the narrative, Stuart Alderoty highlighted that the SEC recently suffered another setback, continuing a series of legal challenges. In the case of the SEC vs. Govil, the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot seek substantial disgorgement without first demonstrating actual financial harm to investors. In essence, this ruling suggests that without harm to investors, there should be no penalty.
The legal saga between Ripple and the SEC began in December 2020 when the regulatory body initiated legal action against Ripple Labs. The SEC accused the company of conducting an unregistered securities offering through the sale of XRP, its native cryptocurrency. The case has undergone significant developments since its inception, with Judge Analisa Torres ruling that XRP should not be considered a security when traded on the secondary market. Furthermore, charges against Ripple executives were reduced as the legal proceedings unfolded.
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