Crypto Attorney Asserts $20 Million Settlement Represents Overwhelming Victory for Ripple

Ripple News

John Deaton, a prominent cryptocurrency attorney, has weighed in on the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple. According to Deaton, a potential settlement of $20 million or less would represent a significant legal victory for Ripple.

In a recent statement shared on X (formerly Twitter), Deaton strongly dismissed the notion that the lawsuit’s outcome stands at an even 50/50 split between the SEC and Ripple. Instead, he asserted that it’s more of a 90/10 advantage in favor of Ripple. Deaton’s remarks were prompted by a post from Stuart Alderoty, Ripple’s Chief Legal Officer, who highlighted another legal setback for the SEC.

Read Also: XRP Sees a 176% Surge Amidst Price Recovery Efforts

Cryptocurrency Community’s Positive Outlook

Deaton’s perspective aligns with the prevailing sentiment in the cryptocurrency community, which generally sees the suggested $20 million settlement as a favorable resolution for Ripple. This assessment takes into account the potential ramifications of the XRP’s value decline, currently trading at $0.67, and the broader regulatory landscape for digital currencies.

SEC’s String of Defeats: Implications for Digital Currency Regulation

Stuart Alderoty’s post adds to the narrative by pointing out that the SEC has suffered another defeat, marking a series of setbacks. In the case of the SEC vs. Govil, the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot demand a substantial disgorgement award without first demonstrating actual financial harm to investors. In essence, this means that if no harm is proven, there will be no penalty.

The legal dispute between the SEC and Ripple began in December 2020 when the SEC initiated legal action against Ripple Labs. The SEC accused the company of conducting an unregistered securities offering through the sale of XRP, Ripple’s native cryptocurrency.

A significant turning point occurred when Judge Analisa Torres ruled that XRP was not a security when traded on the secondary market, setting a crucial precedent. Additionally, the case saw significant developments as charges against Ripple executives were reduced.

Recently, Judge Torres approved an order related to the SEC and Ripple’s joint request to propose a briefing schedule addressing institutional sales of XRP. This pertains to the segment of the XRP lawsuit where the company was found to have violated securities laws. Torres instructed the parties to submit a joint briefing schedule no later than November 9th.

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About Maria Morgan

Maria Morgan is a full-time cryptocurrency journalist at Coinography. She is graduate in Political Science and Journalism from London, her writing is centered around cryptocurrency news, regulation and policy-making across the glob.

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