Attorney John Deaton has offered a fresh perspective on the legal confrontation between Ripple and the SEC, potentially changing the course of the dispute. Deaton argues that Ripple’s potential $770 million fine could be significantly reduced based on legal precedents. He suggests that Ripple may be able to exclude XRP institutional sales conducted outside the United States from the SEC’s reach, citing the U.S. Supreme Court’s Morrison ruling. This defense aligns with Deaton’s analysis of other cases, which require disgorgement to go to investors who have incurred actual financial losses. Deaton believes that most of Ripple’s institutional sales did not result in such harm, which could lead to a significant reduction in the potential disgorgement amount. Ripple’s international sales also play a crucial role in the case, as the legal standings of XRP vary across jurisdictions. The classification of XRP as not a security in the UK and Japan strengthens Ripple’s stance against the SEC’s allegations. Deaton highlights that the case against Ripple is a regulatory dispute rather than allegations of fraud, shifting the focus to compliance and regulatory alignment. With a significant portion of XRP sales occurring outside the US and to accredited investors, the potential disgorgement amount could be substantially reduced. Deaton speculates that Ripple’s potential disgorgement might be lower than its legal defense costs, suggesting a more favorable outcome for Ripple than previously anticipated. He notes that most institutional XRP sales occurred at prices below the current market rate, reducing the likelihood of substantial investor losses. Ripple’s rapid On-Demand Liquidity transactions and the accusation that the SEC’s actions have caused more harm than Ripple’s add another layer to the company’s defense strategy. The outcome of this case is expected to have far-reaching implications for Ripple, the broader crypto market, and its regulatory environment.

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Information	Details
Geography	Global
Countries	🇺🇸 🇬🇧 🇯🇵
Sentiment	neutral
Relevance Score	1
People	John Deaton
Companies	United States Securities and Exchange Commission (SEC), Ripple, Liu v. SEC, U.S. Supreme Court, SEC v. Govil
Currencies	XRP
Securities	None