Attorney John E. Deaton has recently asserted that the only victory the United States Securities and Exchange Commission (SEC) will likely get in its case against Ripple is that the blockchain payments sold XRP as a security from 2013 to 2017. The lawyer representing over 75k XRP holders as a friend of the court in the case made this known in a series of tweets on Wednesday.
Deaton based his view on the SEC’s all-in approach, including past, present, and future XRP sales. He believes that the only victory for the SEC is that Ripple offered XRP as an unregistered security between 2013 and 2017. Consequently, the attorney believes the regulatory agency will neither be able to obtain an injunction against XRP sales nor a disgorgement payment, citing a fine as its best possible outcome. Nonetheless, the attorney says all of these depend on if the judge sees things his way.
Deaton is convinced that a jury trial remains highly possible. He made a case for this last month, asserting that the judge could deny both summary judgment motions, citing “a genuine issue of material facts as to the existence of a common enterprise.”
It is worth noting that the SEC v. Ripple case now awaits the judge’s decision, as both parties have submitted all required briefs. Deaton recently reiterated his belief that the case will not end with an out-of-court settlement, at least not before the judge gives her ruling.
The SEC’s case against Ripple has been ongoing since December 2020. The regulatory agency accused the blockchain payments firm of selling unregistered securities in the form of XRP tokens. Ripple has denied all allegations and has argued that XRP is not a security. The company has also argued that the SEC’s case should be dismissed because the agency waited too long to bring the case.
The SEC has been adamant that the case against Ripple should move forward. The agency has argued that Ripple’s sale of XRP tokens is a violation of securities laws and that the company should be held accountable for its actions. The SEC has also argued that Ripple’s sales of XRP tokens have been ongoing since 2013 and that the company should be held liable for any profits it has made from the sale of the tokens.
The legal battle between the SEC and Ripple has been closely watched by the cryptocurrency community. Many have argued that the outcome of the case could have a major impact on the future of the cryptocurrency industry. If the SEC is successful in its case against Ripple, it could set a precedent that could be used to regulate other cryptocurrencies.
At this point, it is unclear how the judge will rule in the case. However, John E. Deaton believes that the only victory the SEC can get in the case is that Ripple offered XRP as an unregistered security between 2013 and 2017. He believes that the SEC will not be able to obtain an injunction against XRP sales or a disgorgement payment, and that the best possible outcome for the agency is a fine.
Regardless of the outcome, the case between the SEC and Ripple is sure to have a lasting impact on the cryptocurrency industry. The outcome of the case could have major implications for the future of the industry, and it could determine how other cryptocurrencies are regulated in the future. It is clear that the case between the SEC and Ripple is one to keep an eye on in the coming months.
