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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Andras Crow Hreidar

Editorial Director/ Business & Financial Writer Hi there, my name is András and I'm a business and finance journalist living in Norway. My passion lies in uncovering the latest stories in the world of finance and delivering them to my readers in a way that's clear and engaging. I cover a wide range of topics in the finance world, including cryptocurrencies, which I believe have the potential to transform the way we interact with money and financial systems. As a journalist, I'm committed to providing my readers with accurate and reliable reporting. I believe that access to high-quality information is essential for making informed decisions, whether it's about personal finances or investments. When I'm not writing about finance, I enjoy a variety of hobbies and interests.

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