XRP adherents remain confident that Ripple will trump the US Securities and Exchange Commission (SEC) in the ongoing legal brawl. Attorney John Deaton, moderator of over 75,000 XRP holders participating as amici curiae in the case, recently reiterated this sentiment.
In a Twitter thread, the Crypto Law founder wrote that Ripple’s victory is certain thanks in part to the SEC stretching its arguments “too far.” He explains that the SEC claims the disputed XRP token “was, is, and always will be a security.”
The regulator also maintains that XRP sales make Ripple, exchanges, and XRP holders participants in a common enterprise. According to Deaton, this argument means that XRP satisfies all three prongs of the Howey test.
However, the attorney notes that the SEC has not presented evidence to back its later claims. Instead, Ripple has forced the regulator to admit that owning XRP does not give holders any rights in the company. XRP holders have also proven that they majorly purchased XRP without knowledge of Ripple’s involvement and for non-investment purposes.
Similarly, Deaton states that the SEC’s stance on XRP satisfying Howey is impossible to define in space or time. Based on this, Deaton asserts that those predicting XRP is doomed are overstating the SEC’s chances.
Ripple coasting to victory after the last day of filing?
Deaton’s analysis comes after he opined that the SEC’s strongest argument would be to establish that Ripple sold XRP to fund itself. However, he notes that this path, too, will fail the securities watchdog. This is because it will lead to convincing the judge that the entire XRP ecosystem is the common enterprise.
He also pointed out that the SEC has attempted the argument through an expert witness. But it abandoned the witness following rebuff from Ripple and XRP holders.
Notably, the case has dragged on since December 2020 and finally reached the summary judgment stage. Experts in the XRP community speculate that this ruling may come before June 2023.
The general market sentiment is also anticipating the case’s outcome. The consensus is that a ruling in favour of Ripple will cause the price of XRP to explode. XRP trades at around $0.41 at press time, up 3.62% in the daily chart.
However, there is also some concern as a ruling in favour of the SEC is expected to give the regulator more impetus to go after other crypto projects massively.