John Deaton Predicts Ripple’s SEC Fine Will Be Much Lower

Attorney John Deaton, representing XRP holders, has recently presented a compelling argument regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Deaton asserts that Ripple will unlikely face the speculated $770 million disgorgement. He bases this prediction on several key factors that might significantly influence the court’s decision.
Deaton Challenges SEC Over Ripple Sales
Deaton highlights the Supreme Court’s Morrison ruling, which essentially excludes sales outside the United States from SEC’s reach. This is particularly relevant as Ripple’s XRP sales in the United Kingdom, Japan, Switzerland, and other regions are under scrutiny. Moreover, the legal status of XRP in these countries further strengthens Ripple’s position. For instance, the U.K.’s Financial Conduct Authority (FCA) and Japan’s Financial Services Agency (FSA) do not classify XRP as a security. This classification plays a pivotal role, allowing XRP sales to continue legally in these jurisdictions, challenging the SEC’s claim for disgorgement from these international sales.
Furthermore, Deaton emphasizes that the case against Ripple is not a fraud but rather a regulatory dispute. This distinction is crucial as it shifts the focus from punishment to compliance. With most XRP sales occurring outside the U.S. and to accredited investors, the scope for disgorgement narrows considerably. Deaton estimates that the potential disgorgement amount diminishes significantly after excluding non-U.S. sales, which might account for over 90% of total sales and sales to accredited investors.
SEC Faces Criticism from XRP Holders
The attorney also points out the absence of harm in most institutional sales of XRP, noting that the current price of XRP is higher than during these sales. This observation suggests that investors have not suffered losses. Additionally, Deaton remarks on the nature of On-Demand Liquidity (ODL) transactions involving XRP, which occur in seconds, further diminishing the likelihood of investor harm. In a unique twist, the harm accusations are directed more at the SEC than Ripple, especially among the 75,000 XRP holders who joined the lawsuit.
Read Also: Poloniex Losses Within “Manageable Limits” – Justin Sun
- Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand
- Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months
- Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”
- ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?
- Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism