Legal experts in the U.S. see the SEC losing its case against Ripple.
As XRP investors continue to anticipate the end of the Ripple vs. SEC lawsuit, legal experts believe the federal agency could lose the case. Both parties have already filed their summary judgment motions and replies.
However, the public is only given access to redacted versions of their filings. Interestingly, legal experts could speculate the lawsuit’s outcome based on the motions available to the public.
Legal Experts’ Predictions
According to a report written by Forbes Senior Contributor Roslyn Layton, there are signs that the SEC may suffer a “bruising defeat” against Ripple.
“The verdict could drastically limit the SEC’s authority to regulate crypto in the United States. If that’s how it ends, it will have been a self-inflicted disaster from the start,” Layton wrote.
The Forbes journalist quoted a statement by attorney Jeremy Hogan, who said the SEC would only prevail with its recently-filed summary judgment motion if U.S. District Judge Analisa Torres “forgets her first year in law school.”
Similarly, other top legal experts, including Professor J.W. Verret of George Mason University’s Scalia School of Law and Curt Levey of the Federalist Society, think Ripple is on track to record a major victory against the SEC.
Alderoty: Ripple Willing to Settle If…
Despite these legal opinions, the SEC is still committed to making a scapegoat of Ripple to ensure it continues its regulation by enforcement drive in the crypto industry.
Forbes also quoted the statement of Stuart Alderoty, Ripple’s General Counsel recent interview in which he said Ripple is willing to settle if the SEC concludes that XRP is not a security.
“If the SEC makes clear that Ripple sales and distributions of XRP and XRP trading in the secondary market does not constitute a security, if they’re willing to acknowledge that, the case settles and settles very, very quickly…, we have no choice to continue to defend the case.”
"Ripple’s general counsel, Stuart Alderoty, has made it clear that they will settle “in minutes” and pay a fine if the SEC will make it clear that today’s XRP is not a security. Having expended his political capital, Gensler should take the deal." – @RoslynLayton
— Digital Asset Investor (@digitalassetbuy) October 31, 2022
Attorney Deaton Reacts
Reacting to the article, founder of Crypto Law attorney John Deaton confirmed that he will be filing an amicus brief on behalf of over 75,000 XRP holders later today.
The founder of Crypto Law said Forbes’ Layton would have more information in a few hours to enable her to write another article that could pile further pressure on the Securities and Exchange Commission.
“I can assure you it doesn’t get better for @GaryGensler later today when XRPHolders speak out,” Deaton said.
Great article as usual from @RoslynLayton. In a few hours she will have some material for part 2. I can assure you doesn’t get better for @GaryGensler later today when #XRPHolders speak out. https://t.co/ll43UyJw5Q
— John E Deaton (220K Followers Beware Imposters) (@JohnEDeaton1) October 31, 2022
Deaton’s Involvement in the Lawsuit
It is worth mentioning that attorney Deaton currently represents over 75,000 XRP holders in the Ripple vs. SEC lawsuit. Since attorney Deaton was conferred with an amici status in the case, he has made significant steps toward getting the opinions of XRP holders, especially to determine what prompted their decision to purchase XRP.
The SEC claims that investors purchased XRP for investment purposes. The agency said investors were lured into purchasing XRP hoping that Ripple would use its managerial prowess to help them make profits.
However, recent amicus briefs filed by Ripple partners show that not everyone bought the cryptocurrency for investment purposes. Furthermore, some investors purchased XRP without having any prior information about Ripple.
“[…] more than 3,000 provided affidavits to Ripple’s defense team stating that they had never heard of the company they were allegedly investing in before the SEC filed the lawsuit,” Layton said.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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