Crypto lawyer and XRP supporter John Deaton recently outlined what he considers a major win for Ripple in its lengthy lawsuit with the US Securities and Exchange Commission (SEC).
Deaton gave to that U.S. District Judge Analisa Torres could rule that only early XRP sales violated the Securities Act. However, he added that Ripple could then ask for a jury trial on whether or not the SEC was able to “fairly inform” it of a potential violation. He described it as follows:
“If the court rules that Ripple Section 5 [van de Securities Act] violated because these specific sales constituted investment contracts, Ripple argues that the jury must decide whether Ripple was notified.”
He said that since the judge decided to open the “Hinman” documents, there has been speculation that it could end in a split 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 both Bitcoin (BTC) and Ethereum (ETH) were not securities. He said the following:
“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).”
Deaton said that 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. He concluded with:
“If the above scenario occurs AND the judge agrees with Ripple that the jury should then decide whether those early sales should be excused because Ripple was not informed that XRP sales were, in fact, illegal (unrecorded), this can only be described as a TOTAL WIN for Ripple.”
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