Pro-Ripple attorney positive of victory against SEC
- Pro-Ripple attorney John E. Deaton believed that there was a 25% chance of Ripple’s victory.
- Ripple’s valuation could exceed $100 billion if it wins the case.
Pro-Ripple attorney John E. Deaton seemed positive that crypto platform Ripple [XRP] could prevail in its legal battle with the Securities and Exchange Commission (SEC). He made these remarks while appearing on the “Good Morning Crypto” podcast hosted on the 3T Warrior Academy channel on 3 June.
Deaton believed that there was less than a 3% chance of the SEC outright winning the case. On the other hand, there was a 25% chance of Ripple outright winning against the SEC. Further, there was a 50% chance that Ripple would claim victory by way of a “splitting the baby” ruling.
It was in December 2020 that the SEC charged Ripple with allegedly offering the sale of its XRP token, as it fell under the umbrella of an unregistered security.
Deaton discusses the case
Deaton said that Ripple would strive to ensure that the XRP token is deemed a non-security in secondary market sales, at the very least. However, he wondered if the judge would consider the fact if the company was issued a fair notice. He would be “grossly disappointed and discouraged and shocked” if the judge didn’t.
Last week, Deaton lamented the fact that “out-of-control regulators” were pushing to expand the Howey test into secondary markets despite there not being a single such previous case.
“I think that XRP itself is going to be deemed not a security and that I think that secondary market sales show comment. Even if [Judge Torres] does rule finding that Ripple violated the law, that doesn’t apply to secondary market sales.”
When pressed to comment on what would happen if Ripple lost the case, Deaton explained that the company was already operating in a worst-case scenario. If it loses the case, XRP will drop slightly, but eventually recover.
Nonetheless, the corporation will continue to expand outside of the United States.
Ripple’s valuation could exceed $100 billion
Deaton added that Ripple’s inner valuation was estimated at $15 billion, as it held 45 billion XRP tokens. He estimated that if Ripple wins the court case, XRP’s price could reach $2, and the firm’s valuation could exceed $100 billion.
In this situation, it would even outperform Coinbase’s valuation of $15 billion.
Deaton concluded by revealing that Ripple was planning an initial public offering (IPO) before the lawsuit was filed. If the company achieves an outright victory, an IPO could possibly be anticipated within a year.