Prominent legal expert in the field of cryptocurrency, John Deaton, has shared his perspective on the ongoing SEC vs. Ripple lawsuit. He suggests that if Ripple were to reach a settlement of $20 million or less, it would constitute a significant legal victory for the company. Deaton’s viewpoint aligns with the sentiment within the cryptocurrency community, which views such a settlement as a positive resolution to the case.
Renowned Cryptocurrency Attorney John Deaton Believes a $20 Million Settlement Would Signify a Major Triumph for Ripple in the SEC Lawsuit
Highly regarded cryptocurrency attorney John Deaton has provided his valuable insights into the ongoing legal dispute between Ripple Labs and the United States Securities and Exchange Commission (SEC). Deaton has presented a compelling argument, indicating that a potential settlement of $20 million or less would not only represent a victory but a substantial win for the blockchain firm.
In a recent statement on the X platform (formerly Twitter), Deaton was direct in his assessment, dismissing the notion of an even-handed legal battle between the SEC and Ripple. Instead, he characterized it as a lopsided situation, with a 90/10 advantage in favor of Ripple. Deaton’s comments were prompted by a post from Stuart Alderoty, Ripple’s Chief Legal Officer, highlighting another setback for the SEC in a separate legal case.
Deaton’s perspective strongly resonates with the prevailing sentiment in the cryptocurrency community, where the proposed $20 million settlement is widely regarded as a favorable and even celebratory outcome for Ripple. This evaluation takes into account not only the potential consequences of the ongoing XRP lawsuit but also the broader regulatory environment surrounding digital currencies.
Stuart Alderoty’s post adds another layer to the narrative, underscoring the SEC’s recent legal challenges. Alderoty specifically pointed out that in the SEC vs. Govil case, the U.S. Court of Appeals for the Second Circuit recently ruled that the SEC cannot demand substantial disgorgement awards without first demonstrating actual financial harm to investors. This significant development implies that penalties cannot be imposed without evidence of harm to investors.
The legal battle between the SEC and Ripple commenced in December 2020 when the SEC initiated legal action against Ripple Labs. The commission accused the company of conducting an unregistered securities offering through the sale of XRP, its native cryptocurrency. This lawsuit had a significant impact on the cryptocurrency industry, as it had the potential to set a precedent for the classification of digital assets as securities.
A pivotal moment in the case came when Judge Analisa Torres ruled that XRP did not meet the criteria for a security when traded on the secondary market. This ruling had extensive implications, strengthening Ripple’s position in the legal dispute. Furthermore, as the legal proceedings progressed, the charges against Ripple executives underwent substantial reductions, further bolstering the company’s stance.
In a recent development, Judge Torres has approved an order related to the joint request from the SEC and Ripple to propose a briefing schedule specifically addressing institutional sales of XRP. This aspect of the XRP lawsuit pertains to the allegation that Ripple violated securities laws through these institutional sales. Judge Torres has instructed both parties to submit a joint briefing schedule no later than November 9, 2023, marking another significant milestone in the ongoing legal proceedings.
Comments