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Supporters of XRP are still convinced that Ripple will win the ongoing legal battle against the US Securities and Exchange Commission (SEC). Attorney John Deaton recently reaffirmed this opinion. He is the moderator of over 75,000 XRP holders who are acting as amici curiae in the dispute.
The creator of Crypto Law said on Twitter that the SEC had taken its arguments “too far,” which had made Ripple’s triumph inevitable. The disputed XRP cryptocurrency, according to the SEC, “was, is, and always will be a security,” he explains.
The regulator also insists that XRP sales turn XRP holders, exchanges, and Ripple into partners in a single venture. Deaton claims that by virtue of this reasoning, XRP passes all three requirements of the Howey test.
The lawyer does point out that the SEC has not provided any supporting documentation for its latter assertions. Instead, Ripple pushed the regulator to acknowledge that XRP holders do not have any ownership stakes in the business. Holders of XRP have also demonstrated that they acquired the cryptocurrency primarily for non-investment objectives and without being aware of Ripple’s participation.
Deaton contends that it is hard to pin down in space or time the SEC’s position on whether XRP satisfies Howey. On the basis of this, Deaton claims that people who believe XRP is doomed are exaggerating the odds of the SEC.
After stating that the SEC’s strongest case would be to prove that Ripple sold XRP to support itself, Deaton provided his analysis. He does point out that this kind of action will also let down the securities watchdog. This is so that the judge will be persuaded that the whole XRP ecosystem is a shared operation.
He also emphasized how the SEC tried to make its case by using an expert witness. But after opposition from holders of XRP and Ripple, it gave up on the testimony.
Notably, the lawsuit stretched on until it ultimately reached the summary judgment phase after continuing through December 2020. According to experts in the XRP community, this decision may be made before June 2023.
The mood of the market as a whole also anticipates the resolution of the lawsuit. The general belief is that if Ripple wins, the price of XRP will skyrocket. At the time of publication, XRP was trading at around $0.41, up 3.62% on a daily basis.
However, there is also cause for concern because a decision in the SEC’s favor is anticipated to give the regulator additional motivation to pursue other cryptocurrency ventures vigorously.
