Ripple Lawsuit: Top Crypto Attorney Reveals the SEC’s Only Hope for a Win
Crypto attorney John E. Deaton has predicted that the U.S. Securities and Exchange Commission (SEC) will only succeed in establishing that the blockchain payments firm Ripple sold XRP as a security from 2013 to 2017 in the ongoing legal battle between the two parties.
Deaton Says Ripple Will Not Be Ordered to Pay Disgorgement in SEC Case
Deaton is currently representing more than 75,000 XRP holders as a friend of the court in the case. In a series of tweets on Feb. 15, the attorney argued that the SEC is pursuing an “all-or-nothing” approach, which includes targeting past, present, and future XRP sales.
Deaton believes that, as a result of the SEC’s approach, the only victory that the agency could hope to achieve is to establish that Ripple offered XRP as an unregistered security during the period between 2013 and 2017.
According to Deaton, if this is the case, the SEC would likely not secure an injunction or disgorgement but only a fine. However, the attorney also noted that he believes the likelihood of a jury trial is higher than what most people believe.
The lawyer has previously argued that a jury trial is still possible in the Ripple case. He contends that the judge could deny both summary judgment motions, citing the existence of a genuine issue of material facts regarding the existence of a common enterprise. This argument, if accepted by the judge, would prevent a quick judgment in favor of the SEC or Ripple.
The SEC filed a lawsuit against Ripple in December 2020, alleging that the company had sold XRP as an unregistered security, thereby violating federal securities laws. The case has since taken several twists and turns, with Ripple filing a motion to dismiss the case, arguing that the SEC had failed to provide sufficient evidence that XRP is a security.
The outcome of the case is being closely watched by the cryptocurrency industry, as it could set a legal precedent for other cryptocurrencies that are currently in regulatory limbo. Despite the legal challenges, XRP has continued to receive love from investors.