In the Cryptolaw Interview, John Deaton Predicts Ripple’s SEC Fine Will Be Less Than Legal Fees
During an appearance on CryptoLaw, John Deaton, who is representing Ripple in its lawsuit against the SEC, confidently predicted that the fine imposed on Ripple by the SEC would be lower than the legal fees spent on defending the case. He expressed his belief that the SEC will be conservative in imposing a fine and suggested that it would not exceed $770 million.
Deadline By Judge Torres for Remedies Phase in Ripple Vs SEC
In response to Judge Analisa Torres’ order concerning the remedies phase of the SEC v. Ripple case, Deaton speculated that Ripple would not have to pay the $770 million disgorgement demanded by the SEC. This is based on Ripple’s assertion that XRP is not a security and its argument against the unfounded charges brought by the SEC. The timeline for completing discovery related to remedies has been set, with both parties required to meet specific deadlines.
Potential Factors That Could Lower Ripple’s Penalty Amount
Deaton highlighted several reasons why he believes Ripple may pay a reduced penalty. He referenced the Supreme Court’s Morrison Ruling, which allows Ripple to exclude XRP institutional sales conducted outside of the United States. Additionally, disclosures made by Ripple executives Brad Garlinghouse and Chris Larsen suggest that a significant portion of XRP transactions may have occurred outside of the SEC’s regulatory jurisdiction.
Deaton: Up to 90% of Potential Ripple Fine Could Be Avoided
Deaton estimated that up to 90% of the $770 million at issue in the SEC’s lawsuit could be covered by transactions not subject to disgorgement and two legal precedents, Liu v. SEC and SEC v. Govil, which require disgorgement to be paid to victims who suffered substantial financial harm. He also suggested that legitimate business expenses might be excluded from the disgorgement amount.
Hot Take: Uncertain Future for Ripple-SEC Drama
With Ripple having spent $150 million on legal fees so far and no clarity on how much more will be spent, it remains uncertain how this ongoing drama with the SEC will unfold. The outcome of this legal battle will undoubtedly have significant implications for both Ripple and the cryptocurrency industry as a whole.
By
By
By