Breaking Down the Triumph
Prominent cryptocurrency attorney John Deaton has shed light on the monumental legal confrontation between the United States Securities and Exchange Commission (SEC) and Ripple. He ardently argues that a settlement amounting to $20 million or less epitomizes a significant legal victory for the latter.
In a recent post on social media platform X, Deaton vehemently disagreed with the notion that the lawsuit’s outcome was a balanced 50-50 for the SEC, instead claiming that the scales tipped at a stark 90-10 advantage in favor of Ripple. This sentiment was propelled by a post from Stuart Alderoty, Ripple’s Chief Legal Officer, who underscored another legal stumble for the SEC.
Community Resonance
Deaton’s perspective echoes the broader sentiment within the cryptocurrency community, which largely perceives the mooted $20 million settlement as a favorable resolution for Ripple. This interpretation weighs the potential fallout of the XRP lawsuit against the extensive regulatory milieu encasing digital currencies.
SEC’s Legal Stumbles
Expanding on Alderoty’s narrative, the SEC sustained another loss this week, extending a series of legal missteps. Alderoty highlighted a recent ruling in the SEC v. Govil case by the 2nd Circuit, establishing that the SEC must prove actual financial detriment to investors before demanding a hefty disgorgement award. Essentially, without demonstrable harm, there is no penalty.
Unpacking the Historical Litigation
Tracing back to December 2020, the SEC launched a legal offensive against Ripple Labs, alleging the firm of orchestrating an unregistered securities offering through the sale of its native cryptocurrency. However, a pivotal precedent was set forth when Judge Analisa Torres ascertained that the asset was not a security when traded on secondary markets. The litigation journey also saw a reduction in charges levied against Ripple’s top brass.
Moving Forward
Recently, Judge Torres green-lighted an order concerning the SEC and Ripple’s mutual request to outline a briefing schedule addressing institutional sales of XRP. This phase is intertwined with the segment of the XRP lawsuit where Ripple was found to have transgressed securities laws. A joint briefing schedule is anticipated to be furnished by both parties no later than November 9, marking the next chapter in this legal saga.
