Crypto Counsel John Deaton Sums Up What Will Happen If SEC Prevails In XRP Legal Brawl Against Ripple
Although he strongly believes the resolution of Ripple’s lawsuit with the U.S. Securities and Exchange Commission will be in favour of the XRP progenitor, vocal crypto advocate John E. Deaton has hinted at what might happen if the securities watchdog wins.
This Will Happen If The SEC Wins
Can Ripple pull off a win against the SEC? Ripple has notched several procedural victories that have led XRP enthusiasts to believe that Ripple may win the two-year legal battle.
But if things don’t go as expected and the presiding judge Analisa Torres buys into the SEC’s assertion that all XRP transactions, including those conducted on secondary markets, are securities, the Commission’s victory would spell trouble for many other crypto-focused companies. This is according to John Deaton.
Deaton observed that a positive outcome for the SEC would embolden its chair Gary Gensler by giving him both the cover he needs as well as the momentum to lodge similar suits against companies operating within the digital asset space.
The XRP lawyer’s comments were in response to a tweet from Fox Business journalist Eleanor Terrett, who shared some insights about the recent shutdown of Signature Bank. Notably, little explanation was given as the New York Department of Financial Services announced it would be shuttering Signature on Sunday. Terrett cited ex-congressman Barney Frank, who savvily indicated that it was a calculated move to send an anti-crypto message.
XRP Poised For Big Price Movement On Ripple’s Legal Win Prospects
Ripple is one of the titans of the cryptocurrency industry in the United States, creating real-world products from a revolutionary technology.
In December 2020, the SEC dropped the bomb on the bourgeoning sector by suing the company and two of its top executives for raising over $1.3 billion via the sale and distribution of the XRP cryptocurrency without registering. The central question in the lawsuit is whether XRP is a security, and the eventual court hearing will determine the fate of the token.
Most pundits in the cryptosphere agree Ripple so far has the edge in the long-running court battle. The SEC, meanwhile, suffered a setback of its own last month when the court refused to strike Ripple’s key fair notice defense.
The judge’s decision, expected to arrive by June, will likely prove a turning point for XRP and the broader crypto industry. That said, XRP could make a run for $1 if Ripple wins.