By Solomon Odunayo
A prominent blockchain and digital currency lawyer, Stephen Palley, has recently aired his opinion regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
According to Palley, a lengthy courtroom battle is unnecessary for Ripple’s path going forwards in the case. He said the best means for the firm to have headway in the battle is to cut a deal with the securities regulator.
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The lawyer pointed out that it might be impossible for the payment firm to succeed in court and create a new legal test for digital assets as widely claimed:
“For XRP to survive, Ripple needs to cut a deal with the SEC and not persist in the risible delusion of ultimate success in the US Supreme Court and substitute the Ripple Test for the Howey Test. There are 600 million reasons why I am right. If they care about bag holders, that’s the path.”
Tetragon’s Lawsuit against Ripple
Palley also shared his opinion regarding the second lawsuit that was filed against Ripple by one of its stakeholders in the Delaware Chancery Court a few days ago.
Tetragon Financial Group Ltd. filed a complaint against the blockchain payment firm seeking to “enforce its contractual right to require Ripple to redeem” Series C preferred stock currently held by the firm. However, Ripple has claimed that the lawsuit lacks merit.
Read Also: Ripple’s Lawyer Points out A Single Legal Question at the Center of SEC’s Lawsuit
Reacting to this, the crypto lawyer said the suit is “another bit of very unwelcome news for Ripple”, which makes it somewhat clear that the company already knew that XRP would be deemed a security:
“The problem Ripple is going to run into – and why I think they are basically screwed – is discovery, including contemporaneous documents and depositions. There’s no universe in which this will help them at all.”
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