XRP’s Triumph: Attorney Sees $20M Settlement as Major Win
Cryptocurrency Attorney John Deaton has shed light on the highly discussed legal tussle between the United States Securities and Exchange Commission (SEC) and Ripple, suggesting that a settlement of $20 million would be a landslide victory for Ripple.
Taking to X, Deaton robustly challenged the notion that Ripple’s settlement would be a mere fifty-fifty split in favor of the SEC. Instead, he presented it as a dominating 90/10 split in favor of Ripple. Deaton’s bold statement followed an update from Ripple’s Chief Legal Officer, Stuart Alderoty, who shared news of the SEC’s latest legal hurdle.
Deaton’s perspective echoes a broader optimism found among cryptocurrency enthusiasts, who largely view a possible $20 million settlement as a favorable outcome for Ripple. This outlook takes into account the potential ramifications of the lawsuit involving XRP and the wider implications for the regulation of digital currencies.
Alderoty’s commentary adds depth to the narrative, underscoring the SEC’s recent stumble in the SEC vs. Govil case. Here, the U.S. Court of Appeals for the Second Circuit decided that the SEC could not seek a significant disgorgement without proving actual monetary damage to investors. This suggests that without evidence of harm, penalties cannot be imposed.
XRP Legal Issues
The legal battle commenced in December 2020 when the SEC accused Ripple Labs of engaging in an unregistered securities offering with the sale of XRP. However, the legal winds shifted when Judge Analisa Torres ruled that XRP, when traded on secondary markets, did not constitute a security. The litigation saw further evolution with the reduction of allegations against Ripple executives.
Adding to the developments, Judge Torres has given the green light to an order concerning a joint proposal from the SEC and Ripple to discuss a briefing schedule on institutional XRP sales. This particular part of the lawsuit dealt with allegations of Ripple violating securities law. Judge Torres directed both parties to come up with a briefing schedule by no later than November 9.
In conclusion, Ripple stands on the cusp of what could be seen as a pivotal moment, potentially setting the stage for future regulatory clarity and the treatment of digital assets.