John Deaton Predicts 99.9% Legal Victory for Ripple in SEC Lawsuit
John Deaton, a well-known crypto lawyer and founder of Crypto Law, has shared his perspective on the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). According to Deaton, if Ripple settles the lawsuit for $20 million or less, it would be considered a 99.9% legal victory for the company.
A Strong Case for Ripple
In response to a tweet by Stuart Alderoty, Ripple’s chief legal officer, regarding another legal setback for the SEC, Deaton argued that the SEC’s chances of winning were closer to 10% rather than 50%. He believes that Ripple has a strong case in its favor.
The recent ruling by the U.S. Court of Appeals for the Second Circuit in the SEC vs Govil case further weakened the SEC’s position. The court stated that the agency cannot seek disgorgement without proving financial harm to XRP investors.
However, it is important to note that while Judge Analisa Torres ruled that secondary sales of XRP were not securities or investment contracts, she also acknowledged that selling the digital asset to institutions and sophisticated buyers violated securities law. This decision supported the SEC’s claim for approximately $770 million from institutional XRP sales.
Mixed Reactions from the Crypto Community
The outcome of Judge Torres’ ruling received mixed reactions from the crypto community. Some believe that it was a 50-50 victory for the SEC, while others agree with Deaton’s assessment that a $20 million settlement would be favorable for Ripple.
Deaton acknowledges that Ripple has faced challenges due to the SEC’s actions, which have hindered XRP’s potential mass adoption and caused damages to the company over the past three years.
Hot Take: Ripple’s Potential Legal Victory
The ongoing lawsuit between Ripple and the SEC has sparked significant debate within the crypto community. While some argue that the SEC has a strong case, others, like John Deaton, believe that Ripple’s chances of legal victory are much higher.
Deaton’s prediction of a 99.9% legal victory for Ripple if they settle the lawsuit for $20 million or less highlights his confidence in the company’s position. The recent ruling in the SEC vs Govil case further weakens the SEC’s ability to seek disgorgement without proving financial harm to XRP investors.
As the legal battle continues, it remains to be seen how Ripple and the SEC will resolve their differences. However, Deaton’s perspective offers insight into the potential outcomes of this high-profile case.
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