- Pro-crypto lawyer John Deaton is optimistic both Grayscale and Ripple will beat the SEC if the cases get to the Supreme Court.
- With the expectations growing, many are optimistic XRP price will touch $1 if the case ends in Ripple’s favor.
John Deaton, a crypto lawyer, and advocate has come out to say that the blockchain payments firm, Ripple Labs Inc will win its ongoing lawsuit with the United States Securities and Exchange Commission (SEC) with zero doubt. Deaton, who doubles as the founder of CryptoLaw Media outlet revealed this on Twitter in response to a tweet from a user @AP_Abacus who said the separate lawsuit between the US SEC and Grayscale Investments will likely end in the latter’s favor at the DC Circuit Court.
Deaton concurred with this assessment, confirming that the chances of the Digital Currency Group (DCG) subsidiary winning at the DC Circuit court is pegged at 50:50. Recall that Grayscale sued the SEC back in June when the regulator rejected its application to convert its flagship Grayscale Bitcoin Trust (GBTC) product into a full-fledged spot Bitcoin Exchange Traded Fund (ETF).
Grayscale’s argument consists in the fact that the regulator’s refusal is unwarranted considering it has approved a series of Bitcoin Futures ETFs in the previous year. The SEC’s argument remains the same and it borders on the fact that Grayscale does not have the capabilities to prevent an industry-wide price manipulation that is renowned with cryptocurrencies.
According to @AP_Abacus, Grayscale presented a good argument before the DC Circuit court, and should it win there, chances are the case will be dragged along to the United States Supreme Court.
In Deaton’s opinion, with the current makeup of the Supreme Court which does not tolerate excesses from Government agencies, Grayscale will have a 75-80% chance of winning at the apex court. The ruling, just like that of the SEC vs Ripple is considered one of the most defining cases for the crypto industry and the outcome can shape the future of the industry for decades to come with the precedent that will be set.
A win is more than possible. I put the odds of a @Grayscale win before the DC Circuit at 50/50 and a win before the Supreme Court at 75-80%. Under the law, the @SECGov’s denial of a spot #BTC ETF while allowing both a futures ETF and short ETF is arbitrary and capricious. https://t.co/22iKnNdhsB
— John E Deaton (@JohnEDeaton1) January 26, 2023
Ripple Chances of Winning SEC
Deaton has been a very vocal advocate of Ripple and he does not often fail to showcase how the $1.3 billion lawsuit brought against the company by the SEC is an overreach of its powers. Deaton believes the chances of the blockchain payments company winning the regulator if the case gets to the Supreme Court are very high, considering how the court ruled in West Virginia vs EPA case.
And after the Supreme Court’s decision in West Virginia vs EPA, I have zero doubt that the current makeup of the U.S. Supreme Court will rule in favor of @Ripple if it goes that far. The SEC did not limit its allegations to only apply to Ripple’s sales of #XRP. It went too far,
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Several other lawyers and observers share a similar sentiment with John Deaton and in the Amicus Briefs filed. Ripple has as many as 3,000 statements from the company’s partners who attested to the fact that their utilization of the XRP coin was as a utility without the expectations of earning a return from it as a security. Something that the SEC is accusing the company of selling cryptocurrency as a security.
With XRP changing hands at $0.4106 at the time of writing after inking a 1.3% growth, expectations remain high that the digital currency will soar above $1 when the case is concluded.