John Deaton Predicts Ripple’s Bright Future After Legal Victory

XRP is yet again in the spotlight after the rumors of the SEC appeal plan. As per the court timeline SEC needs to file its appeal-related brief by January 15. Based on the current US political scenario, Prominent attorney and XRP advocate John E. Deaton has outlined his predictions for Ripple’s future, suggesting the company may launch an IPO by late 2025 or early 2026. The timeline depends on how quickly Paul Atkins is confirmed as SEC Chairman. Deaton believes the SEC will withdraw its appeal, resolving the legal battle and allowing Ripple to focus on growth and an IPO. 

Possible outcome if SEC Appeal 

Deaton outlines several reasons why the SEC’s appeal is a losing battle. First, the ruling isn’t binding for other cases and doesn’t broadly apply to all cryptocurrency sales. Judge Torres only ruled that the SEC didn’t prove XRP sales in the secondary market were securities under the Howey Test. Even if the SEC won the appeal, the case would likely return to Judge Torres, who could still rule against the SEC on other grounds.

If the SEC takes the case to the Supreme Court, it risks a bigger loss. The Court could set a precedent that favors cryptocurrencies, which the SEC likely wants to avoid. Deaton believes that under Paul Atkins, the SEC would recognize this risk and withdraw the appeal. Ripple would likely pay a fine, and the case would end.

Moreover, with the positive outcome, XRP can attain new heights currently XRP is waiting to break its 2021 ATH of $3 target. The analyst even predicts that XRP can go even $19 if the SEC withdraws the case. 

The Weaknesses in the SEC’s Appeal

Deaton highlights several reasons why the SEC’s appeal lacks merit. First, Judge Torres’ decision is not a binding precedent and has already been criticized by legal scholars and other judges, including Judge Rakoff in the same district. Second, the ruling’s narrow scope means it doesn’t broadly exonerate all secondary market sales of digital assets but focuses on the SEC’s failure to meet the Howey Test’s criteria in Ripple’s case.

Even if the SEC were to win on appeal, the case would likely be remanded to Judge Torres, who could apply other Howey factors and potentially arrive at the same conclusion. Furthermore, Deaton notes that if the case escalates to the Supreme Court, the SEC risks a significant loss. 

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Ripple’s IPO and Regulatory Clarity

With the legal battle behind them, Ripple could focus on launching its IPO. Deaton sees this as a big step for the company and the crypto industry. Going public would give Ripple more resources and credibility while showcasing how regulatory clarity can help crypto companies grow.

Deaton predicts Ripple’s SEC battle could end positively, paving the way for the company to lead crypto innovation and highlight the benefits of clear regulations.