Lawyer Admits SEC Has a Valid Claim as XRP Verdict Nears
Talks about the XRP verdict have escalated in recent weeks among lawyers, with one admitting that the Securities and Exchange Commission (SEC) may have one solid claim.
The SEC filed a lawsuit against XRP issuer Ripple in 2020, alleging that the token is an unlicensed security. The agency also claims that XRP investors rely on Ripple’s efforts to generate profit.
Lawyer Bill Morgan says most people who have an interest in XRP recognize the authenticity of some claims made by the SEC even as they continue rooting for Ripple to win the case.
Morgan argues that since Ripple is a centralized entity, it grants it total control over the XRP’s price. This gives rise to questions regarding the decentralization of XRP and whether Ripple plays a role in its performance.
Further, the lawyer supports SEC’s claim that investors usually bank on the XRP issuer’s efforts rather than the firm’s business efforts. He points to the current situation where XRP investors are depending on Ripple’s win against the SEC to reap gains.
Lawyer Says SEC Used Howey Test to File Lawsuit Against Ripple
Meanwhile, lawyer John Deaton says the lawsuit leveled against Ripple by the SEC is based on Howey Test, a framework used in the United States to determine if an asset can be considered an investment contract.
Deaton claims that the Judge overseeing the case may also deem XRP an investment contract. He says the counter-argument raised by Ripple that an underlying contract never existed to qualify its token as an investment contract does not hold water.
Deaton Predicts Ruling Date for SEC Vs. Ripple Legal Battle
As XRP supporters eagerly await the ruling of the SEC vs. Ripple lawsuit, Deaton has predicted the potential verdict date. In an interview with Thinking Crypto, the lawyer anticipated that the Judge will deliver their ruling on May 5 or 6.
Deaton said his prediction is based on the Judge’s past ruling timelines. He claimed they always deliver verdicts within two months after Daubert motions. However, the lawyer explained that the crypto community should only expect a summary judgment. He anticipates that the detailed ruling will be issued after June 1.
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