Renowned cryptocurrency lawyer John Deaton has shared his perspective on the ongoing lawsuit between the United States Securities and Exchange Commission (SEC) and Ripple, suggesting that a settlement amount of $20 million or less would represent a significant legal victory for Ripple.
In a recent post on a social media platform, Deaton firmly dismissed the notion that the lawsuit’s outcome is evenly balanced, instead asserting that it tilts heavily in favor of Ripple, with an approximate 90/10 advantage.
Deaton’s comments were prompted by a post from Stuart Alderoty, Ripple’s Chief Legal Officer, who highlighted another legal setback for the SEC.
Deaton’s viewpoint aligns with the sentiment prevailing in the cryptocurrency community, where many see the proposed $20 million settlement as a favorable resolution for Ripple.
This assessment takes into account the potential ramifications of the XRP lawsuit and the broader regulatory landscape surrounding digital currencies.
Stuart Alderoty’s post further contributes to this narrative by pointing out yet another setback for the SEC. In the SEC vs.
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Govil case, 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.
Essentially, this implies that in the absence of harm, there should be no penalty imposed.
The SEC initiated legal action against Ripple Labs in December 2020, alleging that the company conducted an unregistered securities offering by selling its native cryptocurrency, XRP.
The case took a significant turn when Judge Analisa Torres ruled that XRP was not a security when traded on the secondary market. Additionally, charges against Ripple executives were reduced during the course of the lawsuit.
Meanwhile, Judge Torres has recently approved an order regarding a joint request from the SEC and Ripple to propose a briefing schedule to address institutional sales of XRP.
This pertains to the portion of the XRP lawsuit where the company was found to have violated securities laws.
Judge Torres has instructed both parties to submit a joint briefing schedule no later than November 9th, indicating ongoing developments in this high-profile legal battle.
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