This week, the U.S. Securities and Exchange Commission (SEC) vs. Ripple lawsuit is set to reach a summary judgment. Many rumors and guesses about the case’s conclusion have already surfaced on the internet.
An attorney representing XRP token holders in the dispute, John Deaton, has proposed scenarios in which both parties can win.
While recent developments in the long-running case have supported Ripple, Deaton stated on Twitter that the crypto company could still lose. Both parties will need to agree on some undisputed facts.
He went on to say that admitting these facts could prevent the case from going to a jury. However, if the SEC and Ripple are unable to reach an agreement on the facts, the jury will decide their destiny.
Both parties will meet this week, according to the XRP attorney, to deliberate on the summary judgement scheduling order. In mid-May, Ripple was attempting to move the initial briefing. He hinted that initial papers and Daubert motions could begin as early as June.
Fight for fair notice
The Commission, however, could lose if the case is judged only on the basis of strict Howey analysis rather than fair notice, according to Deaton.
Meanwhile, he pointed out that if the judge rules that Ripple is not complying with the fair notice requirement, they can choose for what many cryptocurrencies have done.
Attorney emphasised that if the court rules that XRP is not a security, the ruling will only apply to the token.
Deaton mentioned in a comment that the SEC wants to avoid a jury trial over the fair notice. On the other hand, the court owes the parties a duty of good faith, and neither of them can claim that it is unrelated to the dispute.
The SEC was recently chastised by XRP holders who said the regulator had harmed their financial prospects as a result of the case.