XRP lawsuit gains the spotlight as a potential 99.9% victory for Ripple makes the headlines. Pro-XRP attorney John E. Deaton envisions a scenario that could lead to a remarkable 99.9% victory for Ripple in the SEC’s XRP lawsuit.
In a recent statement, Deaton highlights that a settlement of $20 million or less would constitute a significant legal triumph for the San Francisco-based blockchain payments firm.
XRP Legal Battle: 90% Chance of Victory?
In a striking assessment, crypto attorney John Deaton suggested that the U.S. Securities and Exchange Commission (SEC) has just a 10% chance of prevailing in its legal battle over the XRP token, with a substantial 90% likelihood favouring Ripple. Deaton firmly contradicts the notion that the lawsuit’s outcome is a mere 50/50 proposition for the regulatory agency.
Deaton’s comments followed a post by Ripple’s legal head, Stuart Alderoty, who highlighted the SEC’s most recent legal setback. Furthermore, Deaton goes on to express that if Ripple ultimately incurs penalties of $20 million or less, it would represent a favourable resolution for the company.
The SEC Lawsuit’s Impact on Ripple
It’s an understatement to say that the SEC lawsuit has had a profound impact on Ripple. In the weeks following the lawsuit’s initiation, nearly all U.S.-based cryptocurrency exchanges ceased XRP trading. Significant partnerships, such as the one with MoneyGram, swiftly disintegrated, and Ripple’s CEO, Brad Garlinghouse, began hinting at the possibility of the company relocating to more favourable regulatory environments.
In a significant turn of events, U.S. District Judge Analisa Torres in Manhattan concluded in July that the sale of XRP on exchanges and through algorithms did not constitute an unregistered securities offering. The lawsuit also took a recent twist when the SEC voluntarily dropped its charges against Ripple CEO Brad Garlinghouse and Executive Chairman Christian Larsen.
Despite the challenges, Ripple has secured three victories in its multi-year legal battle with the SEC, providing some regulatory clarity to the crypto industry.
As the Ripple-SEC case continues, the next significant date to watch may be November 9, 2023, when both parties are set to propose a briefing schedule for determining appropriate remedies related to Section 5 violations tied to Ripple’s institutional sales of XRP.
XRP is currently experiencing a surge, with a 14% increase in the past 24 hours, making it the fourth-largest cryptocurrency, although it remains more than 80% below its historic high of $3.40 in 2018.