The Ripple vs SEC legal saga takes a fascinating turn as XRP lawyer John Deaton anticipates a notable reduction in the speculated $770 million disgorgement. The recent comments from popular figures from the XRP community have caught the eyes of crypto market enthusiasts.
Meanwhile, in the latest statement, John Deaton has expressed his perspective on the legal situation involving Ripple and the SEC. Notably, he suggests that in an upcoming CryptoLawUS livestream, he will discuss the matter further.
Deaton Anticipates ‘SEC Might Owe Ripple Money’
According to his latest statement on the X platform, Attorney John Deaton, representing XRP holders, anticipates that Ripple might end up paying much less than the initially stated $770 million in the legal proceedings. He refers to a recent Supreme Court ruling regarding disgorgement, stating that it should not be punitive and cannot exceed the “net profits” from sales.
In addition, Deaton implies that Ripple, as a company, can deduct legitimate business expenses, and he specifically mentions $150 million in legal fees that Ripple paid, which he believes could be deducted. Notably, he mentioned Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty might consider this stance.
Besides, he also noted a flurry of factors such as foreign sales, sales to accredited investors, and ODL (On-Demand Liquidity) transactions that might impact the final amount Ripple has to pay.
The statement suggests an optimistic view that, based on legal considerations and deductions, Ripple could potentially owe less money to the SEC. He even humorously said that the “SEC might owe Ripple money”.
Deaton’s Stance On The $770 Mln Fine
Deaton’s insights focus on critical elements that could sway the court’s decision in the company’s favor, ushering in a potential legal victory for the cryptocurrency company. He underlines the significance of the Supreme Court’s Morrison ruling, excluding sales outside the United States from SEC jurisdiction.
Ripple’s international XRP sales, especially in regions like the United Kingdom, Japan, and Switzerland, face scrutiny, but their legal status as non-securities in these countries adds weight to Ripple’s defense. With the U.K.’s Financial Conduct Authority (FCA) and Japan’s Financial Services Agency (FSA) not classifying XRP as a security, the SEC’s attempt to seek disgorgement from international sales faces a considerable challenge.
While Deaton’s interpretation provides a hopeful perspective for Ripple, it’s essential to acknowledge the complexity of legal proceedings. Meanwhile, the upcoming CryptoLawUS live stream will be closely watched by market watchers, as it promises a more in-depth analysis, shedding light on potential implications for Ripple in this landmark legal battle.
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