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Ripple Loses, But XRP's Sales Are Clarified, Crypto Lawyer on Possible Outcome of Case

Fri, 03/03/2023 - 15:40
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Gamza Khanzadaev
John Deaton does not exclude Ripple's loss against SEC
Ripple Loses, But XRP's Sales Are Clarified, Crypto Lawyer on Possible Outcome of Case
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Crypto lawyer John Deaton has revealed his reasons for taking on the role of representing XRP holders in their standoff with the SEC. The pro-crypto lawyer's comments followed a speech from Ripple's chief legal officer, Stuart Alderoty, about what happens if they lose to the SEC at this stage.

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According to Deaton, if Ripple loses, they can appeal, move the case to the Supreme Court and maintain the status quo. Ripple will be able to provide money transfer services and sell XRP while the case is pending, the lawyer explains.

However, XRP holders, XRPL developers and other other categories of user are not in the same boat and, for them, a Ripple loss could be the final nail in the coffin. From Deaton's point of view, the key is to clarify the secondary sales status of XRP, even if Ripple loses, and this clarification will be given in the form of dicta. This is the legal term for a remark made by a judge, which has little legal force but can still be used as a strong argument in future proceedings.

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As for Alderoty, he says that if Ripple loses at this stage, an appeal will be filed immediately. He has no doubt that the crypto company will win if the process moves to the Supreme Court on appeal. However, a victory through summary judgment would mean that Ripple has more room to expand domestically, concluded Alderoty.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.