The legal dispute between blockchain company Ripple and the Securities and Exchange Commission (SEC) continues to capture significant attention as the parties involved put forth various scenarios for the case’s resolution. Following Ripple’s partial victory, in which the court ruled that XRP tokens were not securities, the cryptocurrency community closely monitors the unfolding developments and speculates on the final outcome.
Notably, John Deaton, a prominent lawyer advocating for XRP, has cast doubt on the likelihood of a trial in this case. During an interview with Thinking Crypto on October 5, he expressed skepticism about the SEC’s prospects if it chooses to pursue the high-profile case, highlighting the numerous complexities the regulatory agency would face.
Deaton believes two alternative paths could be taken while predicting that the SEC might lose a trial, with his skepticism rooted in the potential risks and uncertainties associated with a trial, including the public spectacle it would create.
“I don’t think a trial is going to happen. <…> They’re going to lose. Do they really want all that Hinman stuff and the drama of a trial? <…> It’s going to be a big, long, lengthy, very expensive trial,” he said.
Impact of SEC’s other crypto cases
Deaton emphasized the financial burden a protracted legal battle would impose on both parties. This sentiment is particularly relevant considering the SEC’s ongoing enforcement actions against cryptocurrency exchanges like Coinbase and Binance and its involvement in other legal matters within the cryptocurrency industry.
“And if your chances are slim to none, why do that right now? If they weren’t fighting Coinbase and Binance and doing all the other things, maybe it’s worth it. But don’t you need those resources to fight the other cases? So that’s what I mean, is that I don’t think there’ll be a trial,” he added.
The attorney concluded his remarks with a caveat, acknowledging that his assessment might not necessarily reflect the SEC’s actual strategy, highlighting the inherent unpredictability of legal proceedings.
The discussion surrounding the possibility of a settlement has intensified following Ripple’s recent legal victory. Specifically, on October 3, Judge Analisa Torres rejected the SEC’s motion for an interlocutory appeal. In her order, she also raised the prospect of a potential resolution between the two parties before the April 23, 2024 trial date.
Meanwhile, despite the ongoing legal challenges that have cast a shadow on the value of XRP, Ripple is actively pursuing partnerships to enhance the network’s utility. Ripple was recently unveiled as a member of the task force initiated by the Bank for International Settlements (BIS) with the goal of advancing cross-border payment interoperability and expansion.
BIS has been engaged in blockchain experimentation aimed at achieving streamlined interoperability and cross-border payments for some time. In addition to Ripple, BIS has enlisted the participation of other entities, including Mastercard (NYSE: MA), in its task force.
XRP price analysis
By press time, XRP was valued at $0.52 with daily losses of about 0.66%. On the weekly chart, XRP is down almost 0.2%.
In a technical analysis based on one-day data obtained from TradingView, XRP currently exhibits a state of neutrality. The summary, moving averages, and oscillators all indicate a ‘neutral’ sentiment, with respective readings of 9, 1, and 8.
All factors considered, the prospects of XRP greatly remain hinged on the outcome of the SEC case.