John Deaton, a well-known crypto lawyer and the founder of Crypto Law, has once again expressed his viewpoint on the ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
According to a tweet from Deaton, he believes that if the settlement amount in the lawsuit is $20 million or less, it would be a 99.9% legal victory for Ripple.
Deaton argues that those who claim the SEC had a 50-50 victory in the case against Ripple are mistaken. He believes it was more like 90-10 in Ripple’s favor.
Deaton’s comment was triggered by a tweet from Ripple’s chief legal officer, Stuart Alderoty, which highlighted another legal loss for the SEC. The U.S. Court of Appeals for the Second Circuit ruled that the SEC cannot request a disgorgement award without proving financial harm to XRP investors.
Earlier, Judge Analisa Torres ruled that the secondary sales of XRP were not securities or investment contracts, giving Ripple its first major victory in the lawsuit. However, the judge also upheld the SEC’s argument that selling the digital asset to institutions and sophisticated buyers violated securities laws.
Mixed reactions emerged within the crypto community regarding Judge Torres’ ruling. Some believe the SEC had a 50-50 victory, while others, including Deaton, consider the proposed $20 million settlement as a favorable resolution for Ripple.
Despite his belief that the case favored Ripple, Deaton still insists that the SEC’s actions have harmed the potential mass adoption of XRP over the past three years.