Attorney John Deaton, who represents XRP holders, made a compelling case in the legal saga between Ripple and the SEC, stating that an expected $770 million divestment for Ripple is unlikely. He bases his expectations on various influencing factors that could affect the court’s ruling.
Deaton Underscore The significance of the Supreme Court’s Morrison ruling, which effectively limits the SEC’s jurisdiction over sales within the United States. This gains importance as Ripple’s XRP sales in the UK, Japan, Switzerland and other regions face scrutiny. Additionally, the legal status of XRP in these jurisdictions strengthens Ripple’s position.
I’ll address this on Tuesday @CryptoLawUS Live broadcast. @ripple It would pay much less than $770 million.
The Supreme Court ruled that reversion is not punitive in nature and cannot exceed “net profits” from sales. A company can deduct legitimate business expenses. @bgarlinghouse And the… https://t.co/jDkOfoj1w
– John E. Deaton (@JohnEDeaton1) November 11, 2023
For example, regulatory bodies such as the Financial Conduct Authority (FCA) in the United Kingdom and the Financial Services Agency (FSA) in Japan have not classified XRP as a security. This designation is critical, as it allows for the legal continuation of XRP sales in these regions, posing a challenge to the SEC’s quest to evade these global transactions.
In addition, Deaton emphasizes that the legal action against Ripple does not focus on fraud but constitutes a regulatory dispute. This distinction is pivotal because it redirects attention from punitive measures to regulatory compliance. Since a large portion of Ripple (XRP) sales occur outside the United States and involve accredited investors, the likelihood of a breakup is greatly reduced. Excluding sales outside the United States, which may account for more than 90% of total sales and sales to accredited investors, Deaton estimates a significant reduction in the potential discharge amount.
Related: Cryptocurrency lawyer says $20 million settlement represents a 99.9% win for Ripple
Furthermore, the lawyer points out that most institutional XRP sales have not resulted in any damage, with the current XRP price exceeding levels during those sales, indicating no losses for investors. Deaton also emphasizes the fast nature of On-Demand Liquidity (ODL) transactions with XRP, which occur within seconds, reducing the potential for harm to investors. Interestingly, the accusations of harm are directed more at the SEC than at Ripple, especially among the 75,000 XRP. Pregnant women Participation in legal proceedings.
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