A Lengthy Legal Battle Nearing its End
The legal dispute between Ripple and the SEC has been ongoing for some time. The SEC filed a lawsuit in 2020, claiming that Ripple’s XRP token is an unregistered security. This had a negative impact on XRP’s price growth until recently.
Ripple achieved a partial victory in court, as the sales of XRP to retail investors were deemed not to be securities sales. However, the case is still ongoing as the classification of early sales to institutional investors has yet to be determined. Recently, an order was approved regarding the next steps in judgment for institutional sales of XRP.
Experts believe that Ripple has won a partial victory, with a score of 50-50. However, lawyer John E. Deaton argues that the judge ruled more in Ripple’s favor, estimating it to be around 90-10.
A Potential Settlement Victory for Ripple
In response to a social media post about another SEC setback, Deaton stated that a settlement payment of $20 million or less would be a significant legal victory for Ripple. Deaton has previously suggested that the SEC may seek a $770 million settlement.
The SEC has dropped its separate lawsuit against Ripple’s CEO and co-founder. However, co-founder Chris Larsen believes that the regulator should be held accountable for its baseless actions.
Implications for the Crypto Industry
The outcome of Ripple’s legal battle will have significant implications for the entire crypto industry. It will provide clarity on how the SEC determines whether a digital asset is considered a security or not.
Currently, XRP is the only crypto with regulatory clearance in the US. In contrast, executives from SafeMoon were recently arrested by the US Department of Justice for committing investor fraud.
Hot Take: Ripple’s Path to Victory in Legal Battle with SEC
Ripple is on track to potentially settle its legal dispute with the SEC, bringing an end to a lengthy battle. According to lawyer John E. Deaton, if Ripple ends up paying $20 million or less in settlement, it would be a 99.9% victory for the company. This comes after Ripple achieved a partial victory in court, with the judge ruling more in their favor than initially thought. The outcome of this case will have significant implications for the crypto industry as it will provide clarity on how the SEC determines the classification of digital assets as securities.
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