Attorney John Deaton believes the outcome of the lawsuit between Ripple and the SEC will have a bigger impact than expected.
Greater impact than expected
With motions for summary judgment in Ripple’s pending lawsuit fully filed and the judge’s ruling expected, attorney John Deaton believes the outcome will have a bigger impact than previously thought.
Last month, a Ripple affiliate called LBRY.com lost its lawsuit against the SEC. The court ruled that the start-up offered unregistered securities in the form of LBRY tokens.
According to Deaton, LBRY’s decision didn’t have as much impact as some suggested. However, he believes that Judge Torres’ ruling, who is handling the Ripple lawsuit, will have a huge impact, both practically and politically.
Three scenarios
Deaton said there are three possible outcomes for the lawsuit, each with far-reaching consequences. First, if the court fully agrees with the SEC, Gary Gensler’s “Regulation through Enforcement” campaign will gain credibility and momentum.
Second, if Ripple wins and the judge criticizes the SEC for pursuing their implausible theory that tokens are securities, it could stop SEC Chairman Gary Gensler’s damaging campaign. Regardless of who sells crypto coins or where they are sold. That would be great news for the crypto world.
Third, he outlines a scenario in which Judge Torres rules that Ripple offered an unregistered security at one point.
Deaton says that the outcome of the Ripple vs SEC lawsuit will therefore be extremely important for the future of the entire crypto world.
