If Ripple wins SEC lawsuit, only Bitcoin and XRP will be safe – John Deaton

Rick Steves

“What’s crazy ironic, is that, with Gensler at the helm, the lawsuit could ultimately give Ripple and XRP an advantage moving forward”.

John Deaton, attorney for the approximately 65,000 XRP Holders accepted as Amicus Curiae in the SEC v. Ripple lawsuit, has shared his thoughts on what may come next for XRP.

In particular, the importance of a couple of rulings and a bull market to transform XRP into the only altcoin with regulatory clarity in the United States.

As for the rulings, Deaton mentions the fight over the Deliberative Process Privilege (DPP) and a summary judgment on the fair notice defense.

Ripple and the SEC were recently allowed to re-brief the court with new arguments on the issue amid last minute changes in the law concerning DPP.

Judge Sarah Netburn is performing an in camera review of the documents the SEC claims to be privileged information in order to decide whether they can be handed over to Ripple as part of the fact discovery.

XRP in all time highs puts Ripple in a leading position

John Deaton talks about the potential size of Ripple amid a future XRP bull run, capable of overshadowing the likes of Morgan Stanley and Goldman Sachs, and the implications of a Ripple win.

“There’s a way for the Ripple case to end and all parties win. It requires two things: 1) favorable rulings for Ripple on fair notice & on the deliberative process privilege; and an Altcoin Bull Market Chart with an upwards trend causing #XRP to surpass its all time high (for example, hitting $5 dollars or higher)”.

Deaton started out by reminding that Ripple owns over 50 billion XRP; a $5 XRP equals Ripple being worth $250 billion dollars – significantly more valuable than MorganStanley or Goldman Sachs.

Could be one of the biggest settlements in history

“If Judge Torres denies the SEC’s motion to strike the Fair Notice Defense and Judge Netburn overrules the SEC’s claim that the #BTC #ETH & #XRP documents are privileged, GaryGensler and the SEC could be facing a very significant precedent setting loss with huge implications”, he continued.

“Those implications could cause the SEC to avoid a trial or Summary Judgment. If #XRP were to hit $5, Ripple could sell 10% of the monthly unlocked escrow and pay a settlement / fine totaling as high as $500 million – providing Gensler with a big public victory & bragging rights.

“It would be one of the biggest settlements in SEC history. If the settlement includes a declaration that ongoing sales of #XRP are not securities, #XRP gets re-listed and clarity is established. The SEC can use the money to create a fund that helps reimburse harmed #XRPHolders.”

XRP and Bitcoin safe. ETH and ADA next?

“Gensler gets the credit helping his political chances. Ripple goes public and immediately becomes one of the most valuable FinTech companies in the world, replacing SWIFT. #XRP returns to battling #Ether for the number 2 spot. #XRPHolders get to finally see which technology wins”.

In this scenario, both the SEC and Ripple win, but “only Bitcoin and XRP would be safe” as John Deaton points to fears that ETH could be next in line for an SEC lawsuit.

“Does everyone win in the above scenario? The SEC wins. Ripple wins. #XRPHolders who never sold win. But what about other crypto projects? If the above scenario happens, ironically, only #Bitcoin and #XRP would be safe. Can #ETH investors honestly say they’re not worried? #ADA?”

John Deaton explained why the worry. Fox Business journalist Gasparino has recently concluded that SEC’s Gensler is waiting on the outcome of the Ripple case and then he may go after Ether

“There’s a reason Gensler won’t comment on whether he believes #Ether is a security. It’s because he wants the option of going after them. What’s crazy ironic, is that, with Gensler at the helm, the lawsuit could ultimately give Ripple and XRP an advantage moving forward”, he concluded.

Although John E. Deaton has come to the conclusion that only Bitcoin and XRP would be safe after the abovementioned settlement, Ripple officials have stated they have gone forward with the lawsuit as a means to protect their interests but also the cryptocurrency industry.

In addition, several legal experts – including XRP-friendly attorney Jeremy Hogan – have said a win on fair notice could save the industry from the SEC.

More on Ripple here

Read this next

Digital Assets

Russia could use cryptocurrency in international payments as sanctions intensify

Faced with stiffening sanctions over its invasion of Ukraine, Russia is reportedly mulling the idea of accepting Bitcoin or other cryptocurrencies as payment for its international trade. Interfax news agency first reported the news on Friday, citing a high-ranking government official.

Digital Assets

Huobi buys crypto exchange Bitex to expand in Latin America

Huobi, the world’s sixth-largest crypto exchange by trading volume, has bolstered its commitment to Latin America with the acquisition of Bitex.

Digital Assets

US Senate to ban Google, Apple app stores from hosting China’s e-CNY

The US Senate could pass new legislation to ban hosting China’s e-CNY – also known as the digital yuan – by US app stores like Apple store, Google Play, and other providers.

Institutional FX

Takeprofit Tech adds Gate.io, GCEX and others to Liquidity Hub

Fintech software developer Takeprofit Tech has onboarded Gate.io, MFP Trading, Velocity Trade and GCEX to its liquidity hub solution network.

Digital Assets

Bosonic launches clearing and settlement solution for digital assets

Bosonic launched a clearing and settlement capability which provides a turnkey digital asset infrastructure platform that can be used by market operators to run their own trading venue or digital asset post-trade service.

Metaverse Gaming NFT

Immersive technologies: How VR technologies can boost our well-being

Neuro-biologists have already proven that the human brain can’t tell the initial difference between reality and deep fantasies. It works for both dreams and daydreaming. In other words, if our brain perceives something as real, we react to it as if it was true. That is why emotions we get in the skillfully-built immersive reality can be a substitute to those we get in real life. 

Digital Assets

LevelField taps METACO’s digital asset custody platform ahead of US bank charter

LevelField is comprised of career bankers who deeply understand the importance of compliance and security.

Digital Assets

JPMorgan Chase invests in crypto forensics startup Elliptic

Multinational investment bank JPMorgan Chase & Co has joined the Series C funding round for Blockchain forensics startup Elliptic, the latest sign of how major banks are warming to cryptocurrencies.

Digital Assets

Alex Iakobachvili parts ways with B2Broker to join GCEX

GCEX, a digital asset and FX technology platform for institutional and professional clients, has appointed Alex Iakobachvili to the role of Vice President of Business Development.