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Ripple Labs XRP Lawsuit and Potential legal Triumph for the Company

Prominent cryptocurrency attorney John E. Deaton has offered valuable insights into the ongoing lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC). According to Deaton, if Ripple manages to settle the case for a total value of $20 million or less, it would constitute a significant legal victory for the company.

In a recent post on social media platform X, Deaton strongly disagreed with the notion that the outcome of the lawsuit was a 50-50 result for the SEC. Instead, he argued that it was heavily skewed in Ripple’s favor, estimating the advantage to be closer to 90-10. Deaton’s remarks were prompted by a tweet from Stuart Alderoty, Ripple’s Chief legal Officer, highlighting yet another legal setback for the SEC.

Deaton’s viewpoint resonates with the wider cryptocurrency community, which generally considers a $20 million settlement to be a positive resolution for Ripple. This assessment takes into account the potential consequences of the XRP lawsuit and the broader regulatory landscape for digital currencies.

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

ÔÇö John E Deaton (@JohnEDeaton1) November 4, 2023

Adding to the narrative, Stuart Alderoty’s post highlights yet another defeat for the SEC, further supporting Deaton’s perspective. In the case of SEC v. Govil, the 2nd Circuit ruled that the SEC cannot request a substantial disgorgement award unless it demonstrates actual financial harm to investors. Essentially, this ruling suggests that no harm equals no penalty.

The SEC initiated legal action against Ripple Labs in December 2020, accusing the company of conducting an unregistered securities offering by selling XRP, its native cryptocurrency. However, the case has since seen significant changes, including the reduction of charges against Ripple executives.

Significantly, Judge Analisa Torres established a precedent by determining that XRP is not a security when traded on a secondary market. Amidst these developments, Judge Torres recently granted approval for an order concerning the SEC and Ripple’s joint request to propose a briefing schedule regarding institutional sales of XRP. This specific segment of the lawsuit addresses the alleged breach of securities laws by the company. The parties involved have been instructed to submit a joint briefing schedule no later than November 9.

The AI legalese decoder can be a valuable tool in this situation as it can help individuals navigate and understand the complex legal arguments and implications involved in the Ripple Labs XRP lawsuit. By using advanced natural language processing algorithms, the AI legalese decoder can break down and explain legal terms and concepts, making them more accessible to all stakeholders.

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