XRP Lawsuit: Ripple’s Potential Legal Victory and Impact of Recent Rulings Unveiled

• Attorney John Deaton, representing XRP holders, suggests Ripple could attain a 99.9% legal victory against the SEC by paying $20 million or less in penalties.
• Recent legal discussions, rulings, and opinions indicate a favorable outlook for Ripple in the ongoing SEC lawsuit.

Attorney John Deaton, representing XRP holders, has shed light on a potential path for Ripple to secure a 99.9% legal win against the SEC by paying a penalty of $20 million or less. His opinion aligns with recent legal analysis and key court rulings in the ongoing SEC v. Ripple lawsuit.

In a notable statement, Attorney Deaton refuted claims of a 50/50 outcome in the recent summary judgment of the SEC v. Ripple lawsuit. He firmly asserted that the outcome favored Ripple by a significant margin, approximating a 90/10 advantage. Furthermore, Deaton suggested that Ripple’s legal win could escalate to 99.9% if the blockchain company agrees to a penalty of $20 million or less.

Impact of Recent Court Rulings

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, highlighted a significant defeat for the SEC in the United States Court of Appeals for the Second Circuit. The ruling emphasized that the SEC cannot seek substantial disgorgement without proving investor financial harm, a decision that could significantly influence the remedies phase of the SEC v. Ripple case.

Attorney Jeremy Hogan echoed the potential implications of this ruling, suggesting that for Ripple to be liable, XRP holders would need to incur losses. Referencing this, Hogan emphasized that Ripple would only compensate damages for institutional investors acquiring XRP above $0.60.

Recall that Judge Analisa Torres delivered the summary judgment in the Ripple case, asserting violations in XRP sales to institutional clients while clearing the company’s sales to retail investors. The ruling set a precedent by confirming XRP itself is not a security, supporting Ripple’s stance.

Moreover, the SEC faced additional setbacks as the court rejected its request for an interlocutory appeal and dismissed the case against Ripple executives Brad Garlinghouse and Chris Larsen.

Despite the SEC’s pursuit of a substantial sum from Ripple’s $770 million XRP sales to institutional clients, legal experts predict a significant reduction in damages during the remedies briefing. Speculation suggests Ripple will likely exclude legitimate business expenses and XRP sales conducted beyond the SEC’s jurisdiction.