Crypto lawyer and XRP advocate John Deaton has put forward a viewpoint, underlining that either of the U.S. Securities and Exchange Commission’s (SEC) probable routes of action in its case against payment company Ripple could significantly influence the future of the crypto landscape.
Deaton’s assertions shed light on the situation’s complexity and the potential impact of the SEC’s final decision.
Potential SEC Paths: Unique Case Argument Or Acceptance Of Verdict?
According to Deaton, the SEC might opt for one of two directions in the aftermath of the SEC vs. Ripple case. One potential route could involve arguing “facts and circumstances” to present XRP’s case as unique.
I believe this is he biggest and hottest debate at the SEC and I believe there are Senior SEC officials who are split on what to do. Some will say don’t appeal and the SEC can argue “facts and circumstances” and that XRP is a unique story, one not shared by other tokens. If you… https://t.co/mIA64MwZvd
— John E Deaton (@JohnEDeaton1) July 25, 2023
This argument would assert that the circumstances surrounding XRP and Ripple Labs do not apply to other tokens. If the SEC chooses this path and the appeal is unsuccessful, the decision could have far-reaching effects on other jurisdictions.
The crypto lawyer also suggests another possibility where the SEC may not appeal the decision. This scenario could be interpreted as the SEC’s tacit acceptance of the verdict. On the other hand, an appeal could influence other judges presiding over similar cases, such as the ongoing Coinbase litigation.
Industry Views On The Potential SEC Appeal
James Murphy, another advocate in the crypto legal space, suggests that the SEC might file an interlocutory appeal. Contrarily, Jack McDonald, CEO of PolySign, asserts that the regulatory body may aim to isolate the XRP ruling.
McDonald believes the SEC might label the XRP ruling as “exceptionally narrow” and not reflective of the broader crypto ecosystem due to the potentially detrimental implications of this case for the SEC.
Meanwhile, in recent developments, XRP, having experienced a quick spike in its price last week that peaked at $0.9, has since witnessed a downturn. So far, the asset has shed approximately 15% of its value over the past week.
Specifically, XRP has experienced a decline from its high of last week to a current trading price of $0.70 as of the time of writing. The market capitalization of XRP currently stands at $36.8 billion, with a 24-hour trading volume of $1.3 billion.
Featured image from iStock, Chart from TradingView