Prominent attorney predicts $20 million settlement would be a legal triumph for Ripple
John Deaton, a well-known cryptocurrency attorney, believes that if Ripple were to settle the lawsuit with the SEC for $20 million or less, it would be a significant legal victory for the company. In a recent post on X (formerly Twitter), Deaton expressed his disagreement with the idea that the lawsuit’s outcome is a 50/50 result for the SEC, stating that it’s more like a 90/10 advantage in favor of Ripple. Deaton’s comments were prompted by a tweet from Stuart Alderoty, Ripple’s chief legal officer, highlighting another legal setback for the SEC.
Crypto community views $20 million settlement as positive resolution
Deaton’s perspective aligns with the sentiment in the cryptocurrency community, which generally sees a $20 million settlement as a positive outcome for Ripple. This assessment takes into account the potential consequences of the XRP lawsuit and the broader regulatory landscape for digital currencies.
SEC faces another legal defeat
Stuart Alderoty pointed out that the SEC suffered another defeat in its case against Govil this week. The U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot request a substantial disgorgement award without demonstrating actual financial harm to investors. Essentially, this means that if no harm is proven, there can be no penalty.
Ripple’s legal journey
In December 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company of conducting an unregistered securities offering through the sale of XRP. The case has seen significant developments, including Judge Analisa Torres ruling that XRP is not a security when traded on secondary markets. Additionally, charges against Ripple executives have been reduced.
Court approves briefing schedule for institutional sales of XRP
Judge Torres has recently approved a request from the SEC and Ripple to propose a briefing schedule regarding institutional sales of XRP. This relates to the portion of the lawsuit where Ripple was found to have violated securities laws. The parties have been instructed to provide a joint briefing schedule by November 9.
Hot Take: Ripple’s potential legal victory
If Ripple ends up settling the lawsuit with the SEC for $20 million or less, it could be seen as a significant legal triumph for the company. This outcome, which is favored by the cryptocurrency community, would have broader implications for digital currencies and their regulatory environment.
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