Ripple (XRP) is currently in the midst of a legal battle with the Securities and Exchange Commission (SEC) that’s fast arriving at summary judgment time. While many people believe SEC is in the wrong, there is also a valid argument to be made that both sides could win.
John Deaton, a crypto lawyer representing more than 50,000 XRP-hodlers in the case, has suggested possible scenarios where both sides win.
The long-running SEC v. Ripple case took a new turn recently when a U.S. District Judge denied a request by the commission to dismiss Ripple’s fair notice defense. The motion filed by the SEC sought to restrain Ripple’s argument that the watchdog failed to adequately warn it of wrongdoing.
The judge’s ruling was seen as a victory for Ripple, as the SEC would now have a much higher burden of proof. However, Deaton said in a twitter thread that Ripple, a fintech company that provides banking and payment solutions to financial institutions worldwide, could still lose the case.
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.
Its possible that both sides win – technically and legally speaking, that is.
— John E Deaton (@JohnEDeaton1) April 18, 2022
Deaton’s argument consists in the fact that both sides will have to agree to a “list of agreed upon..indisputable facts” and that the acceptance of this factual scenario can then remove the lawsuit from being decided by a jury. However, the lawyer notes that if there are disagreements over this legal aspect of the case which has been active since Dec. 2020, then its fate will be in the jury’s hand.
To further illustrate his point, Deaton gives the following example:
“..if the parties in a car accident case don’t agree what color the Traffic light🚦was, the jury decides. But if both parties agree the light was red, there’s no need for a jury to decide that fact.
Hence, Ripple and the SEC could agree to all of the relevant facts.”
The XRP lawyer also said that the two sides will be meeting this week to see if they can agree on a summary judgment scheduling order. Ripple was pushing for initial briefs taking place in mid-May. Deaton however, hinted that initial briefs and Daubert motions could start by early June.
As the SEC and Ripple continue to battle it out in court, cryptocurrency investors are waiting with bated breath to see how the case will play out. Both sides have valid arguments, and it’s possible that both could come away victorious.
However, as of now, and this is based on the case’s latest developments, it seems that Ripple is in a better position to win the case. The SEC has yet to present a clear argument as to why XRP should be classified as a security, while Ripple has provided a number of compelling reasons why it should not. While the outcome of the case is still up in the air, Ripple appears to have the edge.
As of press time, XRP is changing hands at $0.7609, up about 3.50%. The $37 billion market cap coin whose market dominance remains under 2%, traded in a range of $0.7396 – $0.775, indicating some volatility over the last 24 hours.