John Deaton Predicts Ripple's 99.1% Win in SEC Lawsuit Amidst Legal Setbacks – Coinpedia Fintech News
In a recent analysis, John Deaton, the creator of CryptoLaw and lawyer for XRP investors, shared his confident prediction that Ripple will emerge victorious in the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). According to Deaton, this outcome is not a 50-50 proposition but a staggering 99.1% win for Ripple, provided they agree to a reduced fine of $20 million or less.
Crypto Lawyer’s Plan and Recent SEC Losses Favor Ripple’s Chances
Deaton’s assertions were prompted by a tweet from Stuart Alderoty, Chief Legal Officer of Ripple, highlighting yet another legal setback for the SEC. Deaton’s perspective aligns with the general sentiment in the cryptocurrency industry, which views the proposed $20 million settlement as a favorable solution for Ripple. This analysis considers the broader legislative framework governing digital currencies and the potential ramifications of the ongoing XRP litigation.
Stuart Alderoty, in a separate post, further emphasized the SEC’s string of losses and pointed to a recent decision in the SEC v. Govil case by the U.S. Court of Appeals for the Second Circuit. This decision establishes that the SEC cannot demand substantial disgorgement unless it can demonstrate actual financial harm to “investors.” In essence, without proven harm, there will be no significant penalties.
Breaking Down The IPO Rumours
Deaton also addressed two prevalent misconceptions in the cryptocurrency community. First, he clarified that Ripple and the SEC are not engaged in settlement negotiations. Second, he dispelled rumors of Ripple’s intent to launch an Initial Public Offering (IPO) until June 2024. Notably, on October 23, Judge Torres officially dismissed the lawsuit against Chris Larsen and Brad Garlinghouse, two executives of Ripple.
The next significant date is November 9, 2023, when the parties involved are expected to submit a briefing schedule for remedies collaboratively. This date could be pivotal in the ongoing Ripple SEC lawsuit, as it marks the potential for the SEC and Ripple to discuss a briefing schedule and determine the sanctions Ripple may face for alleged Section 5 violations related to its institutional sales of XRP.
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