In the SEC case, Ripple will prevail, the attorney claims
The lawyer does point out that the SEC has not provided any supporting documentation for its latter assertions. Instead, Ripple pushed the regulator to acknowledge that XRP holders do not have any ownership stakes in the business. Holders of XRP have also demonstrated that they acquired the cryptocurrency primarily for non-investment objectives and without being aware of Ripple’s involvement.
Deaton contends that it is impossible to pin down the SEC’s position on whether XRP satisfies Howey in space or time. Based on this, Deaton claims that people who believe XRP is doomed are exaggerating the odds of the SEC.
After stating that the SEC’s strongest case would be to prove that Ripple sold XRP to fund itself, Deaton provided his analysis. He points out that this action will also let down the securities watchdog.
The lawyer does point out that the SEC hasn’t offered any proof to support its later assertions. Instead, because of Ripple, the regulator has been obliged to acknowledge that XRP holders have no ownership stake in the business. Holders of XRP have also demonstrated that a large portion of their purchases was made for non-investment objectives and without their knowledge of Ripple’s involvement.
Similarly, Deaton claims that it is difficult to characterize in space or time the SEC’s position on XRP satisfying Howey. This is why, according to Deaton, people who claim XRP is doomed are exaggerating the prospects of the SEC.
After proving that Ripple sold XRP to fund itself would be the SEC’s most robust case, Deaton provided his analysis. He does point out that the securities watchdog will also fail down this road.
This is so that the judge will be persuaded that the entire XRP ecosystem is a shared operation.
He also emphasized how the SEC tried to make its case by using an expert witness. But after opposition from holders of XRP and Ripple, it gave up on the testimony.
Notably, the lawsuit stretched until it reached the summary judgment phase after continuing through December 2020. According to experts in the XRP community, this decision might be made before June 2023.
The mood of the market as a whole also anticipates the lawsuit’s resolution. The general belief is that if Ripple wins, the price of XRP will skyrocket. At the time of publication, XRP was trading at about $0.41, up 3.62% daily.
However, there is also cause for concern because a decision in the SEC’s favor is anticipated to give the regulator additional motivation to pursue other cryptocurrency projects vigorously.
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