Ripple v. SEC: This Lawyer Has No Doubt Ripple Will Win Over SEC, Here’s Why

As the legal battle between payment company Ripple Labs Inc and the U.S. Securities and Exchange Commission (SEC) draws to a close, more and more positive forecasts are coming in favor of the former. Cryptocurrency lawyer and advocate John Deaton expressed his optimism that Ripple will beat the regulator, in response to a tweet by Ripple’s chief legal officer Stuart Alderothy.

According to Stewart, the SEC has lost a total of four of the five cases brought to the Supreme Court. Based on these statistics, Deaton said he has no doubt that Ripple will also beat the regulator and that the current composition of the Supreme Court will help stop what he called the “gross abuse” of the SEC.

Another good reason he supported Ripple’s impending success is because the company’s summary judgment is well-written.

For a case that has dragged on since December 2020, a closing memo could boost or hurt a firm’s chances against a judge, and Ripple’s closing statement is an “extremely well-written appellate memo,” according to Deaton.

I have no doubt that Ripple will win and the current Supreme Court will close @SECGovrough overkill. The West Virginia Case 🆚 EPA is all you need to read to agree with me. @ripplea summary of the judgment is already an extremely well-written appellate opinion. https://t.co/o3g9zML9S2

— John Deaton (@JohnEDeaton1) February 20, 2023

Ripple has community goodwill

Ripple’s legal battle against the SEC has been cited as very important for the future of the digital currency ecosystem. If the SEC wins the case and is able to label defendant’s XRP sales as a security, it would set a very bad precedent that could lead the regulator to pursue any other firm with a similar business model in the United States.

The commission, led by Gary Gensler, has already managed to fine Kraken $30 million for its staking program and likely charge Paxos for issuing BUSD, which it calls a security. Based on the fact that these cases are critical to the development of the industry, Ripple and other firms have received very strong community goodwill.