Despite the Crypto Crash, some positive news for Ripple from the CEO?

Ripple-pro's lawyer, John Deaton, clarified that XRP it is not a security, but it could be considered as such when traded in the primary market. While he stands by his position that digital assets, including Ripple and Bitcoin, are not securities based on the Howey test, Deaton notes that they can be sold as securities under certain conditions. In this case, the SEC would have to examine every transaction in both the primary and secondary markets.

Ripple CEO expects final court decision in six months

During the Dubai Fintech SummitRipple CEO Brad Garlinghouse revealed that he expects the court's final decision to come in six months. Ripple has spent $200 million so far to defend itself against the lawsuit. Garlinghouse called on the US authorities to provide regulatory clarity to avoid falling behind other countries in the adoption of blockchain technology. He admitted that the lawsuit has been costly and distracting, and it's unfortunate that other companies have to face the same challenges with the SEC.

Potential Ripple Lawsuit Outcomes

Experts predict that the outcome of Ripple's lawsuit could change if XRP is proven to have been sold as a security. In that case, a settlement between the SEC and Ripple could be one of the expected results. Deaton claims that the notion that tokens are investment contracts is false and has not been challenged by the SEC. In the recent case SEC vs. LBRY, the judge stated that secondary sales of LBRY tokens are not considered security sales.

Can we clarify something? Digital assets themselves are NOT securities, just like an🍊was in Howey, or #BTC was in Shavers, or the 🦫 were in Kemmerer, or Chinchillas were in Miller v. Chinchilla, or the condominiums were at SEC Rel. No. 33-5247. Crypto assets can be sold as security.

— John E. Deaton (@JohnEDeaton1) May 10, 2023