There’s a 99.9% chance win for Ripple with a $20 million settlement

In this post:

  • It’s been two years of Ripple and the SEC making regulatory headlines in the crypto industry, and it’s coming to a close. Crypto analysts point to a 90/10 win in favor of Ripple against SEC.
  • John Deaton, a prominent crypto lawyer, contends that in case of a settlement, the amount should total $20 million or a lower figure that would reflect a legal triumph for XRP. 
  • Crypto analysts and legal experts assert that the XRP case will bring much-needed regulatory clarity to the crypto ecosystem.

The recent lawsuit against Ripple has been in the spotlight amid the recent developments of the Pro-XRP lawyer, Deaton, declining the idea of a lawsuit resulting in a 50/50 outcome. The firm has claimed it is closer to a 90/10 advantage in favor of Ripple against the United States Securities and Exchanges Commission (SEC). 

Additionally, the crypto community has been debating on whether Ripple will accept the terms of the settlement and pay the fine imposed, accounting for $130,000. However, the chances of successful negotiations are high, according to market experts. 

Potential $20 million settlement for Ripple Lab’s 

John Deaton, a prominent crypto lawyer, explained his insights into the Ripple lawsuit with the SEC, mentioning a few notable details that move in favor of the crypto firm. He has contended that in case of a settlement, the amount should total $20 million or a lower figure that would reflect a legal triumph for the company. 

In an X post (formerly Twitter), Deaton explained his strong remarks that were initially prompted by the Ripple Labs Chief  Legal Officer, Stuart Alderoty, who had highlighted another setback for the crypto firm. 

Deaton emphasized in his point of view that it aligns with a $20 million settlement that would be highly advantageous in Ripple’s win against the regulatory authority. In light of these proceedings, the crypto firm has also considered the broader regulatory assessment and the consequences of the XRP lawsuit within the settlement. 

According to a post on  November 4 by the Pro-lawyer:

 The people who’ve argued that the SEC got a 50-50 victory in the Ripple case are wrong. It was more like 90-10 in Ripple’s favor. If Ripple ends up paying $20M or less, it’s a 99.9% legal victory.

John Deaton

On the other hand, Stuart Alderoty had posted his own side of the XRP case storyline. He highlighted that the Securities and Exchange Commission had experienced another setback this week, adding to its defeat tally.  Such defeats include the ruling against Govil and the SEC, where the US Court of Appeals for the Second Circuit judged against the regulatory authority. 

The ruling established that the SEC cannot request a substantial disgorgement award without demonstrating real financial harm that XRP investors encountered. This means that no harm, no foul results will be expected since no penalties will be charged if there is no harm brought to the investor funds. 

Ripple’s win against the SEC will help resolve institutional sales dispute

According to Jeremy Hogan, a legal analyst, among the critical factors that have moved in favor of Ripple’s liability is based on whether the XRP investors suffered any monetary loss. Based on his analysis, if the XRP investors purchase the tokens at a lower price, Ripple may evade any claims of financial damages. 

Moreover, this interpretation puts the SEC in a vulnerable position since the XRP firm will avoid accountability, and this means a favorable settlement is on the way for Ripple Labs.  

The crypto community, however, has primarily put its focus on the SEC’s penalties against Ripple. Based on a commentary related to the case, Yassin Mobarak highlighted the Securities and Exchange Commission’s inability to enforce the alleged $770 million penalty for institutional sales. 

Moreover, it might be an unforeseen development that is also in favor of Ripple Labs since its XRP investors haven’t been affected significantly. 

Events within the legal battle

The legal battle began in 2020 when the SEC pursued legal action against the XRP parent firm and charged it with allegations of conducting sales of unregistered XRP tokens, the network’s native crypto, as securities. 

However, Judge Analisa Torres ruled that the XRP assets are not considered as securities sold in the secondary market. Adding to the tally are the positive developments of the crypto exchange when the charges placed on its executives were reduced. 

Judge Torres recently approved an order regarding an SEC case against Ripple in a request to propose a scheduled briefing regarding final proceedings in the case. This also included the institutional sales of XRP tokens. 

Additionally, in the lawsuit on the company breaching the securities laws, Torres instructed the parties to provide a joint briefing that is scheduled on November 9, after the trial. 

Moreover, these developments inquire if the crypto exchange will allow for a settlement, including its institutional sales, which would also improve its success rates against the regulatory authority in claiming another victory. The firm might also be in pursuit of proving the inability of the authority to come up with enough evidence to pursue successful convictions. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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