XRP Blowing Up as Legal Expert Believes $20M Settlement Would be a Record-Setting 99.9% Win for Ripple
Pro-Ripple attorney John E. Deaton has presented a scenario that could result in a 99.9% victory for Ripple in the SEC’s XRP lawsuit.
In a recent post, Deaton suggests that a settlement of $20 million or less would represent a major legal win for the San Francisco-headquartered blockchain payments company.
90% Chance of Win
Well-known crypto attorney John Deaton has argued that the U.S. Securities and Exchange Commission (SEC) only has a 10% chance of winning its courtroom battle over the XRP token, with 90% odds in favor of Ripple. Deaton strongly disagrees with the notion that the outcome of the suit is a 50/50 chance for the regulator.
The XRP holders’ attorney made these remarks in response to a post by Ripple’s legal head Stuart Alderoty, who highlighted the most recent legal setback for the SEC.
Deaton goes on to say that if Ripple ends up paying $20 million or less in penalties, it will constitute a favorable resolution for the company.
The SEC lawsuit has been a significant blow to Ripple. Shortly after the case was initiated, almost all U.S.-based crypto exchanges discontinued XRP trading. Ripple also lost relationships with major partners like MoneyGram, and CEO Garlinghouse started considering relocating the company to friendlier jurisdictions.
In July, U.S. District Judge Analisa Torres in Manhattan concluded that the sale of the XRP cryptocurrency to customers on exchanges and via algorithms did not constitute an unregistered securities offering. The lawsuit also took a major turn recently when the SEC voluntarily dismissed its charges against Ripple CEO Brad Garlinghouse and Executive Chairman Christian Larsen.
Ripple’s three wins in its multi-year legal battle with the securities watchdog have brought some regulatory clarity to the crypto industry.
As the Ripple-SEC case continues, the next important date might be November 9, 2023, when the two parties are scheduled to propose a briefing schedule about the appropriate remedies against Ripple for Section 5 violations associated with its institutional sales of XRP.
XRP is currently experiencing a surge, with a 14% increase in the past 24 hours, surpassing BNB as the fourth-largest crypto asset. However, it is still over 80% down from its 2018 historic high of $3.40.