The outcome of the Ripple-SEC litigation could soon be decided, and attorney Scott Chamberlain has predicted five possible outcomes
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The much-anticipated legal battle between Ripple and the Securities and Exchange Commission may soon be coming to an end, and attorney Scott Chamberlain has made his predictions on how it will play out.
Chamberlain took to Twitter to outline five possible outcomes of the case, centered on whether Ripple’s XRP token is an SEC-registerable security.
His first prediction was a summary judgment in favor of Ripple’s Chris Larsen and Brad Garlinghouse, as Chamberlain believes the SEC does not have enough evidence to support its claim that the two executives knowingly or recklessly sold an unregistered security.
The second possible outcome is a summary verdict for Ripple on overseas sales. Chamberlain argues that Ripple’s sales of XRP on foreign exchanges do not fall within the court’s jurisdiction, and setting a precedent deeming these transactions completed in the US would be a whole new development.
His third prediction is for summary judgment, dismissing the part of the case claiming that XRP itself is a security. He believes there is no precedent for classifying the digital asset itself as a security and that the SEC’s claim was a fabrication to avoid having to prove every sale and to circumvent the problem of overseas sales .
The fourth possible outcome, according to Chamberlain, is that the case proceeds on a limited basis, focusing solely on whether any of Ripple’s XRP sales in the US involved an unregistered investment treaty.
Finally, the lawyer predicts that the case could end in a settlement. He believes the SEC may have underestimated the fact that most of Ripple’s sales on foreign exchanges have been through algorithmic trading. Once those overseas and aftermarket sales are ruled out, Chamberlain argues that there isn’t enough substance left for the SEC to pursue.
The outcome of the case remains to be seen, but Chamberlain’s predictions are sure to fuel the ongoing debate. As reported by U.Today, Ripple CEO Brad Garlinghouse recently predicted the lawsuit would be settled this year.