Prominent cryptocurrency attorney John E. Deaton has provided insights into the ongoing lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC). Deaton argues that a settlement of $20 million or less would be a significant legal victory for Ripple. He strongly counters the notion that the lawsuit’s outcome is a 50-50 result, stating that it leans heavily towards a 90-10 advantage in favor of Ripple. Deaton’s remarks were prompted by Ripple’s Chief Legal Officer, Stuart Alderoty, who highlighted another legal setback for the SEC. Deaton’s viewpoint aligns with the sentiment in the cryptocurrency community, which generally views a $20 million settlement as a positive resolution for Ripple, considering the potential consequences of the lawsuit and the regulatory environment for digital currencies.
Alderoty’s post further adds to the narrative, indicating that the SEC has faced multiple defeats recently. In the SEC v. Govil case, the 2nd Circuit ruled that the SEC cannot request a significant disgorgement award without first demonstrating actual financial harm to investors. This ruling suggests that if no harm is proven, there should be no penalty. The ongoing lawsuit between Ripple and the SEC began in December 2020, with the SEC accusing Ripple Labs of conducting an unregistered securities offering by selling XRP, its native cryptocurrency. The case has seen significant developments, including a ruling by Judge Analisa Torres that XRP is not a security when traded on a secondary market and a reduction in the charges against Ripple executives. Judge Torres has recently granted approval for an order regarding the SEC and Ripple’s joint request to propose a briefing schedule related to institutional sales of XRP, instructing the parties to provide a joint briefing schedule by November 9.
#Ripple #SEC #lawsuit #cryptocurrency #XRP #settlement #legalvictory #regulation
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