Expert Predicts 4 Potential Favorable Outcomes for XRP Holders in Ripple vs. SEC Battle

Famous crypto attorney John Deaton recently took to Twitter to highlight the potential outcomes of the lawsuit between Ripple and the SEC, with a focus on how they could impact XRP holders. The expert divided the possible outcomes into four best-case scenarios and one worst-case scenario.

Best-Case Scenarios

The first best-case scenario is that Ripple outright wins the case, with the judge admonishing the SEC for its behavior in the case. The second best-case scenario is that the judge rules that Ripple offered XRP as an investment contract in specific instances but that XRP itself is not a security, and ongoing and secondary sales are not securities. 

The third best-case scenario is that the judge denies both the SEC and Ripple’s motion for summary judgment and states that a jury must decide disputed facts. However, the judge makes clear that XRP is simply software code and that secondary sales are not securities. 

The fourth best-case scenario is that the judge grants the SEC summary judgment against Ripple for both past and present sales of XRP as an investment contract. But the judge makes clear that her ruling has nothing to do with secondary sales of XRP. Ripple appeals the case, and the status quo remains for years.

Worst-Case Scenario

Deaton said that the worst-case scenario for XRP holders in the ongoing lawsuit between Ripple and the SEC is that the judge grants summary judgment in favor of the SEC but makes no comment regarding the token itself or secondary sales.

In this scenario, he believes he could attempt to do what he did in LBRY at a hearing on damages regarding secondary sales. He also said that he believes Judge Torres will comment regarding secondary sales and the token itself.

Deaton went on to say that if the judge were to grant summary judgment in favor of the SEC, he thinks it’s likely that Judge Torres would deny the SEC’s motion for summary judgment against Brad Garlinghouse and Chris Larsen. 

The most the SEC can hope for is for the Judge to say it’s up to a jury to decide whether the two executives were reckless or not. The attorney thinks it’s more likely the judge grants judgment in favor of the two executives because no reasonable jury could find them reckless.

XRP’s value was worth $0.529 at the time this article was being written, with an increase in buying pressure potentially seeing the price break above the immediate resistance at $0.560 before escalating to the next obstacle at $0.604.