The cryptocurrency sector anxiously anticipates the outcome of the legal dispute between Ripple and the SEC. Analysts are speculating about the many directions the lawsuit could go in the interim. Yet, many predict that Ripple will triumph.
The court’s decision in the SEC v. Ripple case is imminent. The rumors about how the litigation will turn out continue in the interim. John Deaton, a fervent supporter of XRP, Ripple’s native token, contributed his opinion.
John Deaton, founder of Digital Asset news firm Crypto Law
Only four outcomes are feasible in the eyes of the attorney. One of them is a stock market policeman’s triumph. This idea would come as a huge shock. According to Deaton, the current situation makes such a choice doubtful. The SEC could not prove that XRP is a security, which is why.
In his perspective, XRP’s non-security classification was further enhanced by Coinbase listing the cryptocurrency with the consent of the SEC. Deaton further questioned the SEC’s choice to sue Ripple, arguing that the case would have been resolved through enforcement if securities law violations were at issue. He claimed that it was absurd for the SEC to permit the defendant to carry on breaking the law by selling XRP while the litigation was still pending. He mentioned that they would have demanded Ripple to stop selling XRP by sending a cease-and-desist letter.
Deaton then shared his thoughts on the Lawsuit’s outcome, noting that the SEC would likely lose to Ripple in one of four possible outcomes. “In my opinion, the first possible outcome is an outright Ripple win where the judge says there’s no investment contract involved, there’s no post Duty sale obligations,” he said.
Deaton claims that Judge Analisa Torres might decide that Ripple broke the law when it first started out for a “certain time” but that XRP isn’t a security in today’s secondary markets. The third outcome is that the SEC wins outright, which according to Deaton, was highly unlikely. “I got that at zero that’s now maybe I shouldn’t have it that low, but that’s how confident I am about that meaning, that ridiculous theory of theirs,” he added.
The fourth situation is that the jury will be consulted and decide if no one wins. Yet, even though the case was far along, the attorney expressed optimism that the parties may reach a settlement before a summary judgment, stressing that the plaintiffs were prepared.
“Ripple has agreed that they would settle the case before. Their general counsel and their CEO have publicly stated that they would settle today if the SEC would agree to ongoing future sales secondary market sales,” Deaton said.
The anticipated court ruling in a different case would align the parties. In such a situation, the jury would present its verdict and give its analysis of the facts. There is a chance that it will happen. Like when Ripple was unexpectedly defeated. Justice might rule that the cryptocurrency company broke securities laws in this scenario. a violation that would specifically span a certain time frame. This is done without claiming that XRP currently has security characteristics.
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