Ripple, the payment giant, is inching closer to reaching a settlement in its lengthy legal battle with the US Securities and Exchange Commission (SEC), according to recent reports. Noted lawyer and XRP supporter, John E. Deaton, has chimed in on the matter, stating that a settlement would be the best outcome for Ripple. Deaton believes that if Ripple pays $20 million or less in settlement, it would be a 99.9% victory for the company.
The legal dispute between Ripple and the SEC started in 2020 when the SEC filed a lawsuit against Ripple Labs, alleging that the company’s XRP token is an unregistered security. This lawsuit sent shockwaves through the crypto community and caused the price of XRP to remain stagnant for several months. However, Ripple was able to secure a partial victory in court when the sales of XRP to retail investors were deemed not to be sales of securities.
Although the SEC’s motion to appeal the Ripple ruling was rejected by federal Judge Analisa Torres, the case is still ongoing as the classification of the early sales of XRP to institutional investors has yet to be determined. Recently, an order was approved regarding the SEC and Ripple’s request to propose the next steps regarding institutional sales of XRP.
Industry experts believe that Ripple has achieved a partial victory with a score of 50-50, and the next stage will be to reach a settlement. However, John E. Deaton argues that the judge ruled “more like 90-10 in Ripple’s favor.” He suggests that a settlement payment of $20 million or less would be a significant win for Ripple. Deaton has previously stated that the SEC wants a $770 million settlement from Ripple.
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The SEC has dropped its separate lawsuit against Ripple’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen. However, Larsen believes that the regulator should be held accountable for its baseless allegations and the chaos it has caused.
The outcome of the legal battle between Ripple and the SEC will have far-reaching implications for the entire crypto industry. It will provide clarity on how the SEC determines whether a digital asset qualifies as a security. Currently, XRP is the only cryptocurrency with regulatory clearance in the US. In contrast, the executives of SafeMoon, another cryptocurrency, were recently arrested by the US Department of Justice for their involvement in a massive fraud.
The resolution of the Ripple-SEC case will set a precedent for future crypto lawsuits and regulatory actions. It will shape the regulatory framework for digital assets in the US and potentially influence how other countries approach cryptocurrency regulations.
In conclusion, Ripple is nearing the end of its legal battle with the SEC, and a settlement seems to be on the horizon. John E. Deaton, a prominent lawyer and XRP supporter, believes that a settlement with a payment of $20 million or less would be a significant victory for Ripple. The outcome of this case will have wide-ranging implications for the crypto industry and will set a precedent for future legal disputes and regulatory actions.
