Attorney John Deaton, representing XRP holders in the Ripple vs. SEC legal battle, has presented a compelling argument suggesting that the anticipated $770 million disgorgement for Ripple is unlikely. Deaton’s prediction is based on several influential factors that could sway the court’s decision.One key factor Deaton highlights is the Supreme Court’s Morrison ruling, which limits the SEC’s jurisdiction to sales within the United States. This becomes relevant as Ripple’s XRP sales in other countries like the United Kingdom, Japan, and Switzerland come under scrutiny. The fact that regulatory bodies in these jurisdictions, such as the FCA in the UK and the FSA in Japan, have not classified XRP as a security strengthens Ripple’s position. This classification allows for the lawful continuation of XRP sales in these regions, posing a challenge to the SEC’s pursuit of disgorgement from global transactions.Deaton also emphasizes that the legal action against Ripple is not centered on fraud but rather a regulatory disagreement. This distinction redirects attention from punitive measures to regulatory compliance. Considering that a significant portion of XRP sales occurs outside the US and involves accredited investors, the potential for disgorgement is significantly reduced. By excluding non-US sales and sales to accredited investors, Deaton estimates a substantial decrease in the potential disgorgement amount.Furthermore, Deaton points out that most institutional XRP sales have not resulted in investor losses, as the current XRP price exceeds the levels during those sales. This suggests a lack of harm to investors. Deaton also highlights the rapid nature of On-Demand Liquidity (ODL) transactions with XRP, which occur within seconds, further reducing the potential for investor harm. Interestingly, the accusations of harm are more directed at the SEC than Ripple, particularly among the 75,000 XRP holders participating in the legal action.Overall, Deaton’s arguments present a strong case for Ripple, challenging the SEC’s pursuit of disgorgement. The outcome of this legal saga will have significant implications for the future of XRP and the regulatory landscape surrounding cryptocurrencies.

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Information	Details
Geography	Europe
Countries	🇬🇧 🇯🇵 🇨🇭
Sentiment	neutral
Relevance Score	1
People	John Deaton
Companies	Ripple, SEC, Supreme Court, Financial Services Agency (FSA), Financial Conduct Authority (FCA)
Currencies	XRP
Securities	None