John Deaton, a pro cryptocurrency lawyer, says that Ripple has only a 3% chance of completely winning its case against the United States Securities and Exchange Commission (SEC).
In a recent interview, he said that the XRP issuer has a 25% chance of a favorable verdict. Moreover, he has only a 50% chance of a partial victory.
Deaton: Ripple’s Best-Case Scenario Is For The Jury To Decide
Moreover, in the interview, Deaton said, “I think that XRP itself is not recognized as a security, and sales in the secondary market confirm my opinion. Even if [the judge] decides that Ripple violated the law, this will not apply to the secondary market.”
The SEC said that XRP was being sold as an unregistered security by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen in 2020. Furthermore, Deaton says that the size of the win Ripple gets will depend on whether or not XRP was ever sold as an unregistered security.
Ripple‘s best case scenario would be if the judge said it didn’t have fair notice. Even if it sold XRP as an unregistered security before it built the XRP ecosystem.
Deaton said that in that situation, the case would be presented before a jury and be a “complete win.”
One way to help Ripple reach this goal would be for the SEC to say in an email that XRP is “probably not” a security. He said that internal SEC papers that will be made public on June 13 could confirm who wrote the statement.
In response to second-hand sales of the LBC token, John Deaton fought to prevent the SEC from suing LBRY content creator Naomi Brockwell.
Ripple’s Expansion Overseas
Because of the case between the SEC and Ripple, several exchange platforms stopped trading the token. Hence, it created problems for investors. In 2022, the agency initiated at least 30 enforcement actions against crypto firms and refused to draft new regulations.
Chairman Gary Gensler recently stated to the House of Representatives Committee on Financial Services, “Congress gave the Commission a mandate to protect investors, regardless of the labels or technology used. Nothing about the crypto markets is incompatible with the securities laws.”
The SEC has recently confirmed that XRP and 36 other cryptocurrencies are securities. A difficult United States market, according to Garlinghouse, prompted overseas expansions. Such as Ripple’s $250 million acquisition of Swiss custodian Metaco. According to Swiss law, cryptocurrencies are assets.
Additionally, the company has launched a central bank digital currency platform that offers multiple settlement methods.
