Crypto lawyer and XRP supporter John Deaton outlines what he considers a major win for Ripple in its lengthy lawsuit with the US Securities and Exchange Commission (SEC).
the barrel say that U.S. District Judge Analisa Torres can rule that only early XRP sales violated the Securities Act.
He, however say Ripple could then ask for a jury trial on whether the SEC failed to provide “fair notice” of a potential violation.
“If the court finds that Ripple has violated Section 5 [of the Securities Act] because these specific sales constituted investment contracts, Ripple argues that the jury must decide whether Ripple had fair notice.
He say that since the judge decided to open the “Hinman” documents, there has been speculation that she could make a shared decision.
The documents include internal SEC communications related to a 2018 speech by former SEC official William Hinman when he stated in his official capacity that he believed that both Bitcoin (BTC) and Ethereum (ETH) are not securities.
In 2020, the SEC sued Ripple, the issuer of XRP, accusing them of illegally selling unregistered securities.
“Since the judge’s decision on what can or can’t be sealed (e.g. the Hinman emails), many people are discussing a split decision: Ripple is tagged for early XRP sales, but ODL (on-demand liquidity) and secondary market sales turn out to be non-securities (and XRP itself is not a security).”
the barrel say if the judge rules this way and lets a jury decide whether Ripple had “fair notice”, the ruling should be seen as a major win for Ripple.
“If the above scenario plays out AND the judge agrees with Ripple that the jury should then decide whether those early sales should be excused because Ripple was not notified that XRP sales were actually illegal (unrecorded), it could could only be described as a TOTAL VICTORY for Ripple.”
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