Prominent Crypto Lawyer Deaton Reveals Insights, Predicts Victory for Ripple Labs in SEC Lawsuit
Summary:
Renowned cryptocurrency attorney, John E. Deaton has shared his perspective on the ongoing Ripple Labs XRP lawsuit against the Securities and Exchange Commission (SEC). Deaton asserts a settlement of $20 million or less would be a significant victory for Ripple, contradicting the belief of a 50-50 split in the outcome. Deaton's comments came in response to a post by Ripple's Chief Legal Officer, Stuart Alderoty, who pointed out another legal misstep of the SEC. Ripple was sued by the SEC in December 2020 for allegedly conducting an unregistered securities offering through the sale of XRP, but recent court proceedings have lessened charges against Ripple executives.
John E. Deaton, a noted lawyer in the crypto field, has shed light on the ongoing legal tussle between Ripple Labs and the Securities and Exchange Commission (SEC) surrounding its XRP cryptocurrency. Deaton believes that a $20 million or less payout as part of a settlement would constitute a substantial victory for Ripple. Deaton expressed, through a recent X social media post, his disagreement with the view that the lawsuit was an evenly split for both sides. Instead, he suggested a 90-10 skew in Ripple's favor. These comments were made in response to a post by Ripple's Chief Legal Officer, Stuart Alderoty, highlighting another legal hitch for the SEC. Deaton's perspective aligns with the broader crypto community, who perceive a proposed $20 million settlement as a favorable outcome for Ripple, given the implications of the XRP lawsuit and the wider regulatory landscape for digital currencies.
Stuart Alderoty’s recent online statement adds another twist to the tale, bringing attention to the SEC's enduring legal failures. Alderoty cites the SEC v. Govil case to indicate that the 2nd Circuit has ruled that the SEC must prove actual financial harm to "investors" before demanding a significant disgorgement award. This essentially means no harm, no foul. In December 2020, the SEC launched a lawsuit against Ripple Labs, alleging that the company had illegally offered unregistered securities through the sale of its XRP cryptocurrency.
Court proceedings had a ground-breaking impact when Judge Analisa Torres ruled that the said asset was not considered a security when traded on secondary markets. The lawsuit underwent key transformations, resulting in lesser charges against Ripple executives.
Related: Ripple to aid in the launch of Georgia’s national digital currency, the Digital Lari.
In other updates, Judge Torres has newly sanctioned an agenda pertaining to the SEC and Ripple’s mutual proposal to establish a briefing timeline addressing the institutional sales of XRP. This pertains to the segment of the XRP lawsuit where Ripple was found to have breached securities laws. On this, Judge Torres directed the parties to submit a briefing schedule by no later than November 9.
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Published At
11/5/2023 7:56:00 AM
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