- Cryptocurrency attorney John E. Deaton suggests that a settlement under $20 million in the Ripple XRP lawsuit against the SEC would be a significant legal victory for Ripple.
- The SEC faces another legal setback as the 2nd Circuit ruled that the agency cannot request substantial disgorgement without demonstrating actual financial harm to investors
Prominent cryptocurrency attorney John E. Deaton has provided valuable insights into the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) regarding the status of XRP. Deaton believes that a settlement valued at $20 million or less would be a significant legal victory for Ripple.
In a recent social media post, Deaton strongly refuted the notion that the lawsuit’s outcome was a 50-50 situation for the SEC, asserting that it tilted heavily in Ripple’s favor, with a 90-10 advantage. His perspective was prompted by a post from Stuart Alderoty, Ripple’s Chief Legal Officer, highlighting another legal setback for the SEC.
The people who’ve argued that the SEC got a 50-50 victory in the @Ripple case are 💯 wrong. It was more like 90-10 in Ripple’s favor. If Ripple ends up paying $20M or less it’s a 99.9% legal victory. https://t.co/Xe6SYBiTCJ
— John E Deaton (@JohnEDeaton1) November 4, 2023
Deaton’s viewpoint aligns with the sentiment in the cryptocurrency community, which generally sees a proposed $20 million settlement as a positive resolution for Ripple. This assessment takes into account the potential consequences of the XRP lawsuit and the broader regulatory landscape for digital currencies.
Stuart Alderoty’s post further contributes to the narrative by pointing out that the SEC suffered another legal defeat recently, continuing a series of setbacks. In the case of SEC v. Govil, the 2nd Circuit ruled that the SEC cannot demand substantial disgorgement without first demonstrating actual financial harm to investors. In essence, this suggests that without harm, there should be no penalty.
The legal saga began in December 2020 when the SEC initiated legal action against Ripple Labs, alleging that the company conducted an unregistered securities offering by selling its native cryptocurrency, XRP. The case took significant turns, with Judge Analisa Torres ultimately ruling that XRP was not a security when traded on the secondary market. Additionally, charges against Ripple executives were reduced during the legal proceedings.
Related: Epic Face-off: Ripple CEO and SEC Chair to Highlight DC Fintech Week
Meanwhile, Judge Torres recently granted approval for an order regarding the SEC and Ripple’s joint request to propose a briefing schedule addressing institutional sales of XRP, a segment of the lawsuit in which the company was found to have violated securities laws. The parties have been instructed to provide a joint briefing schedule no later than November 9, marking another development in this high-profile legal battle.
Best Crypto Exchange for Everyone
- Invest in Ripple (XRP) and over 200+ cryptocurrencies on America’s most trusted crypto exchange.
- Buy Ripple (XRP) easily and with low fees via PayPal and credit card.
- Enjoy super-low trading fees and access to more than 400 trading pairs.
- Coinbase is regulated by the SEC and FINRA in the USA, and by CySEC and FCA in Europe.
100,000,000 Users
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Credit: Source link
