Prominent Crypto Lawyer Weighs in on Ripple SEC Lawsuit
John Deaton, founder of Crypto Law and a well-known crypto lawyer, has shared his opinion on the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
A Positive Outcome for Ripple
Deaton believes that a settlement of $20 million or less in the lawsuit would be a 99.9% legal victory for Ripple. He states that those who claim the SEC had a 50-50 victory are mistaken, as it is more accurately a 90-10 victory in Ripple‘s favor.
Deaton’s comment was in response to a tweet from Stuart Alderoty, Ripple‘s chief legal officer, regarding a legal loss for the SEC in a separate case. The ruling stated that the SEC cannot request a disgorgement award without first proving financial harm to XRP investors.
In an earlier ruling, Judge Analisa Torres determined that the secondary sales of XRP were not securities or investment contracts. However, the judge upheld the SEC’s arguments 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 Community Reactions
The outcome of Judge Torres’ ruling has received mixed reactions from the crypto community. Some believe the SEC had a 50-50 victory, while others align with Deaton’s perspective that a $20 million settlement would be a favorable resolution for Ripple. However, Deaton still maintains that the SEC’s actions have negatively impacted the potential mass adoption of XRP and caused damages to the company.
### News source: cryptopotato.com