OnChain Standard

Ripple v. SEC: This is going to happen in the case

ripple v. sec

The Ripple versus the U.S. Securities and Exchange Commission (SEC) legal battle has garnered much attention, and lawyer Scott Chamberlain has recently made his predictions on how it will conclude.

Taking to Twitter, Chamberlain laid out five possible outcomes of the case, which revolves around whether Ripple’s XRP token is a security that must be registered with the SEC. First, he predicts a summary judgment in favor of Ripple’s executives, Chris Larsen and Brad Garlinghouse, as he believes the SEC lacks sufficient evidence to prove that the two knowingly or recklessly sold an unregistered security.

Secondly, Chamberlain predicts a summary judgment for Ripple on overseas sales. According to him, Ripple’s sales of XRP on foreign exchanges are not within the court’s jurisdiction, and deeming those transactions as US finalizations would be a new development.

Thirdly, he foresees a summary judgment dismissing the part of the case that asserts XRP itself is a security. He argues that no precedent supports the digital asset itself being classified as a security and that the SEC’s claim was an attempt to avoid having to prove each sale and to sidestep the issue of overseas sales.

Fourthly, Chamberlain suggests that the case might proceed with a limited scope, focusing solely on whether any of Ripple’s sales of XRP in the US involved an unregistered investment contract.

Finally, the lawyer predicts that the case could end in a settlement. He believes that the SEC may have underestimated the fact that most of Ripple’s sales occurred on overseas exchanges through algorithmic trading. Once these overseas and secondary market sales are excluded, Chamberlain argues that there is not enough substance left for the SEC to pursue.

The outcome of the case is still uncertain, but Chamberlain’s predictions are sure to ignite the ongoing debate. Ripple CEO Brad Garlinghouse had previously predicted that the lawsuit would resolve this year.