Attorney John Deaton says that both Ripple and SEC Can Become Winners In the Lawsuit.
The lawsuit filed against popular blockchain company Ripple by the Securities and Exchange Commission (SEC) has had its own fair share of twists and intriguing moments over its more than one year of existence.
The developments in the case have prompted several analysts and the entire cryptocurrency community, especially XRP holders, to forecast a possible outcome in the lawsuit.
Many analysts have predicted an outcome in Ripple’s favor because the blockchain company has seen the majority of the court’s rulings swing in its favor.
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A Win for Both Parties
However, attorney John Deaton, who is representing over 65,000 XRP holders in the case, believes both Ripple and the Securities and Exchange Commission can become winners in the lawsuit.
“RIPPLE AND THE SEC CAN BOTH WIN. Now that we have arrived at summary judgment time, I see a lot of comments on how @Ripple can’t lose at all. Not true. It is possible that both sides win – technically and legally speaking,” attorney Deaton said.
Deaton suggested that both Ripple and the SEC can win legally and technically if the duo agree on “a list of stipulated indisputable facts.”
With the parties reaching an agreement on a list of things considered to be indisputable facts, this will remove such cases from being decided by the court, attorney Deaton said.
Citing a few instances, attorney Deaton noted that the blockchain company and the SEC could agree that Ripple sold 1 billion units of the XRP coins to an investor, with each valued at $0.05 and the total offering valued at $25 million.
He stated that if such an agreement is reached, the court can use the Howey test to decide that the investor bought the XRP with an expectation of making a profit, which makes the entire offering to be considered an investment contract and it will be a win for the SEC
Attorney Deaton added that Ripple could also become a winner in the case if the court uses the same factors to decide that the ongoing sales by Ripples are not securities.
“Ripple could still win b/c the judge applying those same factors decides ongoing sales of XRP by Ripple are NOT securities. Ripple wins.”
“The judge should find that secondary market sales of XRP independent of Ripple are also not securities. XRPHolders win,” attorney Deaton added.