Ripple Proponent Believes XRP is Not a Security: Exploring Possible Scenarios in Ongoing SEC Lawsuit
Summary Judgment Delayed for Ripple vs. SEC Case, Deaton States Up to 60 Days for Final Decision
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According to the Ripple proponent and attorney, there is no proof that XRP is a security.
At this point, it’s uncertain when the summary judgment will be provided.
The ongoing debate surrounding whether XRP qualifies as a security or a commodity in the digital currency realm continues to be a highly controversial and sensitive topic. Once again, the outspoken Pro-Ripple lawyer, John Deaton, has entered the fray by presenting another argument as to why he believes that this payment digital currency should not be classified as a security.
As per the experienced attorney, the mere act of investing in an asset or trading it on the secondary market does not necessarily mean that it meets the definition of a security. Deaton is the foremost authority on all matters pertaining to the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC). In one of his recent tweets, he has offered a comprehensive breakdown of the various possible outcomes that could arise from the case.
Exploring the Four Possible Scenarios
On his preferred social media platform, Twitter, Deaton has put forth four possible scenarios that he envisions could unfold during the course of the lawsuit. His most optimistic forecast is for Ripple to emerge victorious with the judge ruling that the SEC has acted inappropriately and exceeded its jurisdiction in this matter.
Deaton cites Judge Netburn’s previous statements, which have criticized the SEC’s actions and their disregard for the law, as a reason to believe that the judge may be sympathetic to Ripple’s case.
The next best-case outcome, according to Deaton, would be for the judge to determine that Ripple initially sold XRP as an investment contract in the early days of the token’s existence. He believes that the prospectus provided to the first 100 investors could support this argument, leading the judge to rule that subsequent secondary sales of XRP do not qualify as securities.
It should be noted that the remaining two scenarios may work in favor of the SEC and could potentially result in the case being referred to a jury for further examination, which would further prolong the legal proceedings. Despite this, Deaton remains optimistic, pointing out that several reliable sources support the notion that XRP is merely a piece of code, including top government agencies like the Financial Crimes Enforcement Network (FinCEN), and the heavily cited Hinman Speech.
Anticipated Delay for the Ripple vs. SEC Lawsuit Resolution
There is an increasing sense of anticipation surrounding the ruling on the Ripple and SEC case, with various industry players eager to learn when the summary judgment will be delivered.
Providing some clarity on the matter, Deaton has stated that there is no specific deadline for the final verdict to be announced, and it could take up to 60 days for the judgment to be handed down.
There is no deadline of today for her to rule. The decision could come out within the next hour, or it could take another 30–60 days. Based on previous cases, Judge Torres has issued her ruling on summary judgment within a couple of months of her Daubert/Experts’ decision.
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Ripple Proponent Believes XRP is Not a Security: Exploring Possible Scenarios in Ongoing SEC… was originally published in CryptoStars on Medium, where people are continuing the conversation by highlighting and responding to this story.
