There’s a 25% Chance that Ripple will Secure Outright Win in XRP Case: Attorney
- Lawyer John Deaton said that there’s a 25% chance that Ripple will secure an outright win in the case with the SEC.
- The chance of the fintech company’s victory by way of a “splitting the baby” ruling is around 50%.
- Deaton said that there is less than a 3% chance that the SEC is able to secure an outright win against the technology firm.
- There are rumors that Ripple is seeking an initial public offering (IPO) after the case with the SEC ends.
The Ripple vs. United States Securities and Exchange Commission (SEC) case has been one of the most talked-about topics in the entire crypto space, and the end seems to be much closer. After years of debates and statements, pro-XRP lawyer John Deaton believes that there is a 25% chance that the fintech firm based in the US will be able to secure an outright win against the securities regulator of the country. It is clear that the lawyer is in favor of the American technology company.
In an episode of The Good Morning Podcast last week, the founder of CryptoLaw stated that the chances of the SEC securing an outright win in the case against Ripple is less than 3%. Meanwhile, he also added that the chance of the fintech company’s victory by way of a “splitting the baby” ruling is around 50%. It is important to mention here that the lawsuit has been going on since 2020.
Deaton has actively voiced his opinions when it comes to the Ripple vs. SEC case and has favored the former. The SEC alleges that the fintech firm offered US investors securities without first registering its offerings with the regulator. Interestingly, Deaton believes that there is a strong chance of the two entities settling the case by way of a “splitting the baby” ruling.
This hints at the judge presiding, US District Judge Analisa Torres, “drawing a line in the sand” where she could potentially state that the XRP token was offered as a security prior to 2018. Now that the documents related to the former Securities and Exchange Commission corporation finance division director, William Hinman, will soon be made public, the judge can take into consideration the fact that cryptocurrencies can become securities once they are fully decentralized.
“I think that XRP itself is going to be deemed not a security and that I think that secondary market sales show comment. Even if [Judge Torres] does rule finding that Ripple violated the law, that doesn’t apply to secondary market sales,” Deaton explained.
On the other hand, Deaton also brought attention to something he called a “six-month list.” Every year, district judges must file with Congress a list consisting of all the cases that they couldn’t solve in six months, and Judge Torres has never been on this list. The pro-Ripple attorney pointed out that this list is “like a public shame list that says, ‘look I’m shitty at my job.’”
Finally, Deaton also gave a reasonable forecast for the price of the XRP token. He believes that the cryptocurrency will be rightly valued if it’s between the $2 and $10 price levels. There are also multiple rumors that Ripple might be gunning for an Initial Public Offering once the lawsuit is over, and as per CEO Brad Garlinghouse, the decision of the case will come in the next three to six months.
Moreover, in a statement given to CNBC’s Dan Murphy at the Dubai Fintech Summit, Garlinghouse said:
“With the SEC, we will spend — this is the first time I’ve shared this publicly — by the time all’s said and done, we will have spent $200 million defending ourselves against a lawsuit, which from its very beginning, people were like, well, this doesn’t make a lot of sense.”
The Ripple executive also added that SEC Chair Gary Gensler is contradicting his own statements that he made when he was a professor at MIT. Garlinghouse said that Gensler has been recorded saying that 75% of digital assets are commodities while adding, “Now he says they’re all securities because he’s the head of the SEC and he’s seeking power and he’s putting power ahead of sound policy to grow an economy in the United States.”