SEC vs. Ripple: Attorney John Deaton says Ripple will appeal to the Supreme Court if it loses
- Pro-XRP attorney John Deaton argues what’s next for the community if SEC wins against Ripple.
- If Ripple lost, Deaton says the payment giant will appeal the case in the Supreme Court.
- SEC’s win would result in a status quo for the next two to five years.
XRP holder community is speculating about the outcome of the Securities and Exchange Commission (SEC) lawsuit, a verdict which is key for the future of the token. An outcome favoring Ripple could be benefitial for XRP, while a SEC win is likely to extend the current legal uncertainties over the asset as the payment giant is expected to appel the case in the Supreme Court, pro'XRP attorney John Deaton said on Twitter.
Deaton said that a win for the SEC won’t be favorable for XRP holders as there would be two to five years of status quo and no resolution. In a scenario in which Ripple appeals the case to the Supreme Court, the lawsuit is likely to extend between two and five more years but the remittance firm should win “hands down,” he said.
Also read: XRP price likely to rally to new all-time high of $9 says analyst
What XRP holders can expect if SEC wins against Ripple
Attorney John Deaton represents nearly 75,000 XRP holders in the SEC vs. Ripple lawsuit as an amicus or a “friend of the court.”
In a Twitter message responding to one member of the XRP community, Deaton said that Ripple will appeal any sentence against it in the Supreme Court, extending the status quo for the next two to five years. This is the timeline for a ruling in the Supreme Court and according to the pro-XRP attorney, Ripple is likely to win “hands down.”
In this scenario, the 75,000 XRP holders whose interests Deaton represents would receive compensation or payback. However, if Ripple loses all appeals, the SEC is likely to collect the $1.3 billion (the amount that the regulator alleges that Ripple earned from the unregistered securities sale) and offer XRP holders an option to sell their holdings.
By joining the list of XRP holders represented by Deaton, no XRP holder waived their rights for payback. Deaton said he would be contacted in the event of a recovery or compensation for holders as he represents them in the SEC vs. Ripple lawsuit.
XRP is trading at $0.4695 on Binance at the time of writing.
SEC vs. Ripple lawsuit judgment summary is delayed
The prolonged wait for the verdict in the SEC vs. Ripple lawsuit has crypto market participants on edge. Deaton has shared timely updates with the XRP holder community, but the exact date of the ruling isn't known yet. While the judgment in the case is delayed, a SEC’s win could result in another long wait for XRP holders before they see any payback.
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
