Pro-XRP Lawyer Asserts Ripple’s Partial Victory in SEC Lawsuit to Remain Intact Despite Potential Appeal by the Regulator
In a recent development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), a prominent lawyer supporting Ripple’s case has expressed confidence that the company’s partial victory will remain intact, even if the SEC decides to appeal the court’s decision.
The lawsuit, which was filed by the SEC in December 2020, alleges that Ripple and its executives conducted an unregistered securities offering by selling XRP tokens. The SEC argues that XRP should be classified as a security, subject to the same regulations as stocks and bonds. Ripple, on the other hand, maintains that XRP is a digital currency and not a security.
In a significant win for Ripple, Judge Sarah Netburn of the U.S. District Court for the Southern District of New York recently granted the company’s motion to compel the SEC to produce internal documents related to its discussions on whether cryptocurrencies like Bitcoin and Ethereum are considered securities. This ruling was seen as a positive development for Ripple’s defense, as it could potentially undermine the SEC’s argument that XRP is a security while other cryptocurrencies are not.
John Deaton, a lawyer representing over 11,000 XRP holders who have intervened in the case, believes that Ripple’s partial victory will remain intact even if the SEC decides to appeal. Deaton argues that the court’s ruling on the production of internal documents is a significant blow to the SEC’s case and could potentially lead to a favorable outcome for Ripple.
Deaton points out that the court’s decision to grant Ripple access to the SEC’s internal discussions on cryptocurrencies’ classification as securities is crucial because it could expose inconsistencies in the regulator’s approach. If it is revealed that the SEC has previously deemed Bitcoin and Ethereum as not being securities, it would weaken their argument that XRP should be treated differently.
Furthermore, Deaton argues that the SEC’s potential appeal would only delay the resolution of the case and not necessarily change the outcome. He believes that the court’s ruling on the production of internal documents has already laid the groundwork for a favorable judgment for Ripple.
However, it is important to note that the outcome of the case is still uncertain, and Ripple’s partial victory does not guarantee a complete dismissal of the SEC’s claims. The court will ultimately decide whether XRP should be classified as a security or a digital currency, and this decision could have significant implications for the broader cryptocurrency industry.
The outcome of the Ripple-SEC lawsuit is being closely watched by market participants and regulators alike, as it could set a precedent for how cryptocurrencies are regulated in the United States. If Ripple successfully defends its position and XRP is deemed a digital currency, it could provide clarity and regulatory certainty for other cryptocurrencies facing similar legal challenges.
In conclusion, while Ripple’s partial victory in the SEC lawsuit is a positive development for the company, it remains to be seen how the case will ultimately unfold. The court’s decision to grant Ripple access to the SEC’s internal documents is seen as a significant blow to the regulator’s case, but the final judgment will depend on various factors. The outcome of this lawsuit will undoubtedly have far-reaching implications for the cryptocurrency industry and its regulatory landscape.
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- Source: Plato Data Intelligence.