Attorney Predicts Small Penalty for XRP Institutional Sales
According to attorney John Deaton, the judge in the Ripple lawsuit may not impose a significant penalty on the company due to the non-fraudulent nature of the XRP sales to institutional investors. Deaton, who represents over 75,000 XRP token holders, believes that a large portion of the speculated $770 million disgorgement that Ripple faces will be excluded from the penalty. This is because the sales made through On-Demand Liquidity (ODL) and to institutional investors outside of the US are legal.
Amicus Brief Possible in Coinbase Lawsuit
If Coinbase loses its motion to dismiss, Deaton plans to file an amicus brief on behalf of Coinbase customers. The hearing for the motion is scheduled for January 17, 2024. The purpose of the amicus brief is to argue that individuals and token holders should have a say in their own interests rather than relying solely on the US SEC and Coinbase. Deaton also predicts a partial victory in the motion to dismiss, as he believes the asset sales were conducted through an intermediary rather than directly by an issuer.
Earlier, Coinbase lawyers argued that the US SEC was referring to outdated laws and requested clear guidance from the agency regarding regulations for crypto companies. As of June 14, 2023, the SEC had not made a decision on how to proceed with the rulemaking petition.
Hot Take: Attorney Expects Favorable Outcomes for Ripple and Coinbase
In summary, attorney John Deaton is optimistic about the outcomes of both the Ripple lawsuit and the Coinbase lawsuit. He believes that Ripple may face a small penalty due to the legality of its XRP sales to institutional investors and the use of On-Demand Liquidity. Additionally, he plans to file an amicus brief in support of Coinbase customers if the motion to dismiss is not successful. Deaton predicts a partial victory in the motion to dismiss for Coinbase, arguing that the asset sales were conducted through an intermediary rather than directly by the exchange. Overall, Deaton’s insights suggest potential positive developments for both Ripple and Coinbase in their legal battles.
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