Crypto Attorney Predicts Ripple’s Chances in Lawsuit
According to the prominent crypto attorney John Deaton, Ripple (XRP) faces only a 3% chance of securing a complete victory in its still going legal battle against the U .S . Securities and Exchange Commission (SEC) . In a recent interview Deaton shared his analysis and said that there is a 25% chance of a favorable verdict for Ripple and a 50% chance of a partial victory .
Deaton believes that XRP itself should not be classified as a security and notes that secondary market sales support this opinion . Even if the court rules against Ripple for violating the law Deaton argues that it would not apply to the secondary market .
Ripple’s Potential Outcomes in the Legal Battle
The SEC has accused Ripple CEO Brad Garlinghouse and co-founder Chris Larsen of selling XRP as an unregistered security in 2020 . Deaton suggests that Ripple’s level of success in the case hinges on whether XRP was indeed sold as an unregistered security at any point in time .
The best case scenario for Ripple would be if the judge determines that the company did not receive sufficient warning even if it sold XRP as an unregistered security before establishing the XRP ecosystem . In a scenario like this the matter would be presented to a jury and potentially lead to a complete victory for Ripple as claimed by Deaton .
To support his perspective Deaton referenced an email from the SEC mentioning that XRP is “probably not” a security . He also expressed anticipation for the release of internal SEC documents on June 13 which could confirm the author of the statement .
In the midst of a legal battle Ripple has encountered challenges with reduced liquidity for the XRP token due to exchanges deregistering it . This situation has posed difficulties for investors .
While the SEC has filed numerous enforcement actions against cryptocurrency companies in 2022 it has yet to introduce new regulations . Chairman Gary Gensler emphasized that the agency’s responsibility is to protect investors irrespective of labels or technology used .
Ripple’s International Expansions Amid Regulatory Challenges
Facing regulatory barriers in the U .S . ,Ripple has expanded its presence overseas . The company recently acquired Swiss custodian Metaco for $250 million and capitalized on Switzerland’s treatment of cryptocurrencies as assets . Additionally Ripple has launched a central bank digital currency platform that offers various settlement mechanisms which clearly shows its commitment to innovation amidst the legal challenges it faces .
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