Ripple vs. SEC: Disgorgement Unlikely Says Legal Expert

Ripple's Legal Battle: A Closer Look

The ongoing legal dispute between Ripple and the United States Securities and Exchange Commission (SEC) has taken a significant turn. Lawyer John Deaton, representing XRP holders, has provided a compelling argument suggesting that the expected $770 million disgorgement from Ripple is unlikely. His insights focus on several pivotal factors that may influence the court's decision.

Jurisdictional Challenges

One of the primary arguments highlighted by Deaton is the impact of the U.S. Supreme Court’s Morrison ruling. This decision restricts the SEC’s authority to regulate sales occurring exclusively within the United States. The ruling becomes crucial as Ripple’s XRP sales have extended to international markets, including the United Kingdom, Japan, and Switzerland. These transactions outside U.S. borders bring about a complex jurisdictional challenge for the SEC.

International Legal Standing

Further strengthening Ripple's position is the legal status of XRP in various international jurisdictions. In countries like Japan and Switzerland, XRP is recognized differently, which supports Ripple's defense against the SEC’s claims. The varying international perspectives on XRP's classification and legality provide Ripple with a robust foundation to counter the SEC’s allegations.

Conclusion

In summary, the combination of the Morrison ruling’s implications and the international legal recognition of XRP significantly weakens the possibility of Ripple facing a $770 million disgorgement. These elements form a strong defense for Ripple, potentially swaying the court's verdict in their favor. As the legal proceedings continue, these jurisdictional nuances will likely play a critical role in shaping the outcome of this high-profile case.