Prominent cryptocurrency attorney John E. Deaton has provided insights into the ongoing lawsuit between Ripple Labs and the Securities and Exchange Commission (SEC) regarding the digital currency XRP. Deaton believes that a settlement valued at $20 million or less would be a significant legal victory for Ripple. He refutes the notion that the lawsuit’s outcome is evenly balanced, asserting that Ripple has a 90-10 advantage. This perspective aligns with the sentiment in the cryptocurrency community, which sees a $20 million settlement as a positive resolution for Ripple. The community takes into account the potential consequences of the lawsuit and the broader regulatory landscape for digital currencies. Ripple’s Chief Legal Officer, Stuart Alderoty, has also highlighted another legal setback for the SEC, further bolstering Deaton’s viewpoint. Alderoty points out that the SEC faced another defeat in a recent case, where the 2nd Circuit ruled that the SEC cannot request a substantial disgorgement award without demonstrating actual financial harm to investors. This ruling implies that without harm, there can be no penalty. The SEC initiated legal action against Ripple Labs in December 2020, accusing the company of conducting an unregistered securities offering through the sale of XRP. However, a precedent was set when Judge Analisa Torres determined that XRP was not a security when traded on a secondary market. Additionally, the charges against Ripple executives were reduced during the course of the case. Judge Torres has recently approved an order regarding the SEC and Ripple’s joint request to propose a briefing schedule to address institutional sales of XRP, which were found to have violated securities laws. The parties have been instructed to provide a joint briefing schedule by November 9.

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Information	Details
Geography	North America
Countries
Sentiment	positive
Relevance Score	1
People	Judge Analisa Torres, John Deaton, Stuart Alderoty, Gary Gensler
Companies	Securities and Exchange Commission (SEC), 2nd Circuit, SEC v. Govil, X social media, Ripple Labs
Currencies	XRP
Securities	None