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

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

Ripple CEO Expects Final Court Decision in Six Months

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

Potential Outcomes of the Ripple Lawsuit

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