In the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), recent developments suggest that the much-anticipated settlement might be just around the corner. John Deaton, the founder of CryptoLaw, has emerged as a pivotal figure, presenting arguments that could significantly impact the outcome of the case.
One of the key revelations from Deaton is the assertion that Ripple may not be obligated to pay the speculated $770 million in disgorgement fees sought by the SEC. According to his analysis, the SEC's efforts to seek disgorgement for XRP sales in various countries, including the United Kingdom, Japan, Switzerland, and others, could face legal hurdles. Deaton points to the Supreme Court's Morrison ruling, which specifically excludes sales outside of the United States, potentially rendering the SEC's pursuit legally unattainable in these jurisdictions.
Moreover, Deaton highlights the classification of XRP as a non-security in several nations, including the UK and Japan, as determined by their respective regulatory authorities. This classification as an exchange or utility token, rather than a security token, poses a challenge for the SEC in enforcing disgorgement on XRP sales in these regions. The legality of selling XRP in these jurisdictions, supported by regulatory authorities, weakens the SEC's case for disgorgement.
Deaton emphasizes that the likelihood of a hefty $770 million fine is low, particularly as sales to accredited investors and non-U.S. sales, potentially constituting over 90% of the total, may be excluded from the final disgorgement amount. In a highly optimistic scenario, he suggests that Ripple might only need to pay a minimal amount, potentially as low as $20 million, in disgorgement fees.
The legal expert also sheds light on the nature of On-Demand Liquidity (ODL) transactions involving XRP, highlighting their rapid transaction speed. According to Deaton, the practically non-existent harm in ODL transactions could further weaken the SEC's case. He points out that any accusations of harm, particularly from the 75,000 XRP holders who have joined the lawsuit, would likely be directed at the SEC rather than Ripple.
In a playful twist, Deaton proposed that if the presiding Judge deducts the $150 million in legal fees that Ripple has already paid, the SEC could potentially owe money to Ripple. Citing the Supreme Court's ruling that disgorgement is not punitive and cannot exceed "net profits" from sales, Deaton suggests that, after deducting foreign sales, sales to accredited investors, and ODL transactions, the SEC might find itself in an unexpected position.
Adding another layer of intrigue to the crypto landscape, RencomNetwork's RNT cryptocurrency is expected to play a role in the platform's expansion into over 130 countries, including the United States. Recent internal confirmation from an insider source reveals that RNT has been granted a non-security status by RencomNetwork's legal team, following a staggering 3000% surge in the past week. This development amplifies the significance of RencomNetwork's recent achievements and sets the stage for broader adoption of RNT as a method of payment on their platform.
As the crypto community eagerly awaits the resolution of the Ripple-SEC saga, Deaton's insights and the emergence of RNT on the global stage add elements of anticipation and optimism to the evolving narrative of crypto regulation and adoption. The next few days or weeks could bring pivotal developments that shape the future trajectory of Ripple, the SEC, and the broader cryptocurrency landscape.