The legal battle between Ripple (XRP) and the US Securities and Exchange Commission (SEC) is still dragging on. It is a very complex matter that makes it difficult to predict the outcome. Nevertheless, this did not stop attorney John Deaton from making a prediction. He still believes in a big win for Ripple.
Keep in mind that Deaton is a huge fan and holder of XRP, so his opinion is not exactly impartial. According to the lawyer, a “total win” for Ripple is a very likely outcome. He highlighted on Twitter that an important moment is approaching. Both parties will soon submit their statements and counter-declarations.
One of the main arguments of Ripple’s lawyers is that XRP is not a security or security, as the SEC claims. In in finance, this refers to a negotiable financial instrument that represents a monetary value. However, companies in the US are not allowed to issue securities without a license from the SEC. Another argument is that Ripple was unaware that XRP tokens were securities during the sale.
Whether or not these are strong arguments, we leave in the middle. However, Ripple recently achieved an important one victory in the lawsuit. The SEC’s motion not to include as evidence a speech by Hinman, a former executive at the SEC, was rejected by the judge. The speech contains an important statement from the ex-director. Hinman claimed that ethereum (ETH) is not a security.
However, whether the judge will agree with the arguments of the Ripple lawyers remains uncertain. Ripple is by no means the only company in the US that is angry about the lack of clear regulations regarding crypto in the US. The outcome of this case could have significant implications for the cryptocurrency industry. Should XRP be labeled a security, it may set a new predecent for crypto in the US, and perhaps even globally. However, that does not mean that all other crypto will also experience the same fate, but how large this share will be is difficult to say.