The Ripple-SEC legal saga takes an unexpected turn as XRP supporter and lawyer John Deaton suggests a substantial drop in the speculated $770 million in damages. In a recent statement, Deaton sheds light on potential factors that could significantly alter the compensation landscape.
**Content Guide:**
1. **Deaton: SEC May Owe Ripple**
- Analysis of Deaton's statement predicting lower damages for Ripple.
- Reference to the Supreme Court's recent decision and its implications.
2. **Obstacles to the $770 Million Compensation Requested by the SEC**
- Examination of critical elements that might favor Ripple in court.
- Emphasis on the Morrison decision excluding sales outside the US from SEC jurisdiction.
**Deaton: SEC May Owe Ripple**
In a noteworthy statement, John Deaton suggests that Ripple might end up paying significantly less than the initially demanded $770 million in damages. Citing the recent Supreme Court decision, Deaton highlights the non-punitive nature of the ruling, signaling a possible cap on the compensation tied to net profits from sales.
Moreover, Deaton introduces the idea that Ripple, as a company, could potentially deduct legitimate expenses from the compensation. Specifically mentioning the $150 million in legal fees paid by Ripple, he speculates on the deductibility of this amount. Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty are proposed to evaluate this scenario.
The statement delves into various factors influencing the final compensation, such as foreign sales, transactions with accredited investors, and On-Demand Liquidity (ODL) transactions. Deaton expresses optimism that, considering these regulatory considerations and deductions, Ripple might pay less than expected, humorously hinting that "The SEC may be indebted to Ripple."
**Obstacles to the $770 Million Compensation Requested by the SEC**
Deaton's perspective outlines critical elements that could sway the court's decision in favor of Ripple, potentially leading to a legal victory. He underscores the significance of the Supreme Court's Morrison decision, which excludes sales outside the US from SEC jurisdiction.
Ripple's international sales in regions like the UK, Japan, and Switzerland face scrutiny, but their classification as non-securities in these countries strengthens Ripple's defense. The SEC's attempt to seek compensation for international sales encounters a substantial hurdle, as regulatory bodies in these countries do not categorize XRP as a security.
While Deaton's insight paints a promising picture for Ripple, the intricacies of legal proceedings necessitate acknowledgment. The upcoming CryptoLawUS livestream promises a more in-depth analysis, offering insights into potential ramifications for Ripple in this landmark legal battle.
