What if the ongoing lawsuit against Ripple could end in their favor? Pro-XRP attorney John Deaton believes there’s a one-in-four chance that the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs could result in a total win for the blockchain company.
Ripple SEC Case: Legal Predictions and Potential Outcomes
Deaton, the founder of CryptoLaw, has been a vocal supporter of Ripple throughout the lawsuit, initiated by the SEC in December 2020. The suit alleges that Ripple’s XRP token was part of an unregistered securities offering. But could there be a chance that the tables turn in favor of Ripple?
In a recent Good Morning Crypto podcast episode, Deaton ventured to predict the potential outcomes of the case. He proposed a 25% chance of an outright victory for Ripple and a 50% chance for a ‘split-the-baby’ ruling. What exactly does this mean, and how does it relate to the so-called ‘Hinman documents’?
The ‘Splitting-the-Baby’ Scenario and the Hinman Documents
The ‘splitting-the-baby’ ruling refers to a scenario where Judge Torres, who is presiding over the case, rules that XRP was unregistered security before 2018, but may not be one now. This verdict hinges on the ‘Hinman documents’, named after former SEC Director William Hinman. These documents contain internal SEC messages related to Hinman’s 2018 speech, hinting at the possibility of cryptocurrencies transitioning from securities to commodities as they become more decentralized.
The Clock Ticks toward the Verdict
While Ripple executives like CEO Brad Garlinghouse have been anticipating an imminent resolution, Deaton believes that a final decision will most likely be made before September 30. The reason? Judge Torres, who has never been on the infamous ‘six-month list’ of delayed summary judgments sent to Congress, wouldn’t want to be on it now.
A Ripple of Excitement: The XRP Price Forecast and Potential IPO
Should the ruling favor Ripple, what could be the impact on its native token, XRP? Deaton speculates that XRP could oscillate between $2 and $10 in the event of a positive verdict. Beyond that, he points out a date to watch – June 13, when the Ripple community might find out if XRP was discussed “between SEC staff prior to the Hinman speech.” Plus, there’s the buzz about a potential Ripple IPO following the lawsuit’s resolution, stirring excitement in the crypto sphere.