Ex-Lawyer Predicts 5 Outcomes in Ripple vs. SEC Lawsuit

•  In the latest development series, a former lawyer shared a tweet noting the 5 outcomes in the Ripple vs. SEC case.
• The Ripple vs. SEC lawsuit is almost 2 years old and has not yet reached any conclusion.

The long-going Ripple vs. SEC case attracted a former lawyer, who shared his 5 outcomes that suggest a possibility in the lawsuit. Scott Chamberlain is a former lawyer and co-founder of Evernode XRPL— the permissionless Layer 2 platform. On March 10th, Chamberlain shared a tweet in which he wrote, “With a decision in SEC vs. Ripple seemingly nigh, I thought I’d do the stupid thing and predict  5 outcomes.”

In In 2022, the US Securities and Exchange Commission (SEC) began a lawsuit against Ripple- a blockchain company. In the case, the SEC alleged that Ripple and its executives illegally sold XRP– a cryptocurrency, to investors without registering it as a security.

5 Outcomes in Ripple vs. SEC Case

According to Chamberlain, his 5 outcomes are as follows. 

Outcome 1: Initially, he gave a summary judgment for Chris and Brad, as he “don’t think the SEC has anywhere near the evidence to support they knowingly or recklessly sold an unregistered security.”

Outcome 2: Chamberlain added a summary judgment for Ripple in Respect of Overseas sales and wrote, “Ripple’s sales of XRP on overseas exchanges are not within the court’s jurisdiction. A new precedent would be set to deem those domestic transactions finalized in the US.”

Outcome 3: He also mentioned “summary judgment dismissing the part of the case that asserts XRP itself is a security – no precedent supports the digital asset itself being a security. This claim was a contrivance for the SEC not to have to prove each sale and to avoid the problem of overseas sales.”

Outcome 4: Chamberlain wrote about his 4th outcome: “What proceeds is a limited case about whether any of Ripple’s sales of XRP in the US involved an unregistered investment contract.”

Outcome 5: And lastly, the lawyer mentioned, “Because of 2 and 3, the case settles. I happen to believe the SEC underestimated that most of Ripple’s sales occurred on overseas exchanges through algorithmic trading. Once overseas and secondary market sales are excluded, there’s insufficient meat left on the bone.” 

Although, Ripple’s legal team has secured a win in the lawsuit against the financial watchdog as Judge Analisa Torres ruled on both parties’ motions to exclude certain expert witnesses, especially one that both Chamberlain and Ripple’s amicus curiae John E. Deaton found disastrous for the SEC’s argument.

Moreover, another lawsuit against a cryptocurrency business has been filed as New York Attorney General Letitia James sued KuCoin— a crypto exchange, and accused it of illegally operating as a securities and commodities broker-dealer without registering in the state.

XRP Price Analysis

According to Coinmarketcap, at press time, XRP price is $0.363344 with a 24-hour trading volume of $1.24 billion. XRP is up 0.46% in the last 24 hours, with a current market cap of $18.51 billion. It has a circulating supply of 50.95 billion XRP coins and a max. supply of 100 billion XRP coins.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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