Crypto lawyers say the $20 million settlement is a 99.9% win for Ripple
Deaton vehemently refuted the idea that the lawsuit outcome was a 50/50 outcome for the SEC, claiming that the outcome was closer to a 90/10 edge in Ripple's favor.
Prominent cryptocurrency attorney John Deaton has offered insight into the United States Securities and Exchange Commission (SEC) vs. He argued that a settlement of $20 million or less would represent a significant legal victory for the company.
In a recent post on Deaton's remarks were prompted by a post from Stuart Alderoty, Ripple's chief legal officer, which highlighted another legal setback for the SEC.
Deaton's viewpoint aligns with sentiment within the cryptocurrency community, which generally views the proposed $20 million settlement as a positive resolution for Ripple. This assessment considers the potential consequences of the XRP ( XRP ) lawsuit and the broader regulatory environment for digital currencies.
Stuart Alderoty's post further adds to the storyline, suggesting that the SEC is facing another loss this week, continuing a series of setbacks. According to Alderoty, in the case of SEC vs. Govil, the U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot seek a substantial disgorgement judgment without first demonstrating actual financial loss to the “investor.” if there is no harm, there is no penalty.
In December 2020, the SEC initiated legal action against Ripple Labs, accusing the company of conducting an unregistered securities offering by selling XRP, its native cryptocurrency.
Ultimately, a precedent emerged when Judge Analisa Torres ruled that the assets did not constitute securities when traded on the secondary market.
