Ripple vs SEC John Deaton – The case against Ripple and the Security and Exchange Commission (SEC) has been going on for a while. The case started back in 2020 when SEC issued a lawsuit against Ripple. It was alleged that the company and its executives sold the cryptocurrency XRP to investors without first fully completing its security registration procedure.
The long-awaited verdict will be delivered this month. The case has been a trending issue in the industry and as a result, many are anxiously waiting for the outcome.
In a recent podcast on “Thinking Crypto,” the founder of Crypto Law John Deaton, a staunch supporter of XRP, weighed in on the Ripple argument and shared his thoughts.
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Ripple’s Argument
Ripple’s argument pointed out that if the SEC’s case theory was granted, the court would completely agree there can be an investment contract without a contract. In Deatons comment, he stated that the argument will only be successful in the Second Circuit, and not the First, Fifth, and Ninth Circuits.
He explained further that in other jurisdictions, there have been investment contracts discovered without any fundamental contract.
Judge Torres Might Reject Ripple’s Claim
Furthermore, John Deaton believes that Ripple’s approach might be seen as an “offering” by Judge Torres. Even though Ripple argues that the transaction did not establish an investment contract, given that there was no underlying contract, Judge Torress might reject the claim. However, he thinks that the argument will be favored by the Supreme Court.
He says:
“Ripple’s argument is that that is not enough because there is no underlying contract. I don’t see Judge Torres buying that argument although I see the Supreme Court accepting it.”
Deaton believes Judge Torress will not accept the argument like other Judges had done in the past. He further explained that he thinks that Judge Torres’s summary judgment will be in Ripple’s favor stating that the SEC’s theory is too broad.
He said:
“So if I had to pick one winner, if you said who’s gonna win, an outright win, SEC or Ripple, I would pick Ripple unopposed. A lot of people don’t agree with me, but I’d pick Ripple because the SEC’s theory is too overbroad,”
Possible Ruling before May 6
In the meantime, John Deaton predicted that Judge Torres’s summary judgment ruling on Ripple vs Sec could come before May 6. Nevertheless, it is difficult to say. The ruling could be delayed until a later date of June 1.
“So I’ve been telling people that somewhere between March 6th and May 6th, we’ll get the ruling, right? It could be today while we’re talking, it could be filed, or it could be, you know, May 6th. Now, is it possible that it could go to June 1st? It’s possible, right, we don’t know,”
Only Judge Torres’s staff, and court clerks who helped her gather research aids will be able to predict the ruling date accurately, he added.
