Saturday, February 4, 2023
 

Crypto Lawyer: XRP vs SEC Settles Only After Judge Torres Decision

  • John Deaton says XRP vs. SEC would only settle after a decision from Judge Torres.
  • The lawyer added that an exchange would be sued for selling unregistered securities.
  • The Ripple blockchain awaits a favorable decision from the US court this year.

Blockchain lawyer John Deaton recently aired his prediction about the crypto industry this year. Deaton declared that the multi-year legal battle between the Ripple blockchain (XRP) and the US Securities and Exchange Commission (SEC) would only settle after a decision from Judge Analisa Torres.

However, a few people misconstrued the lawyer. So he clarified that he meant a settlement that would eliminate any potential jury trial and appeal.

Deaton’s second prediction was that an exchange would be sued for selling unregistered securities, like in the case of XRP vs. SEC. He added that the current chairman of the SEC, Gary Gensler, would resign before 2023 ends.

In a tweet earlier this week, the crypto lawyer criticized Gensler for saying the Ethereum network token ETH could be considered a security contract under the Howey test. Notably, the Howey test determines whether an asset qualifies as an investment contract, subjecting it to federal security laws.

Gensler had claimed that proof-of-stake blockchains, such as Ethereum, Cardano (ADA), and Solana (SOL), could pass the Howey test. Under the test, a purchase is considered an investment contract if investors pledge their money to fund an enterprise to make profits from its efforts.

However, Deaton argued differently, stating that staking involves third parties independent of the investment promoter.

After Ripple filed a 65-page reply to the SEC’s opposition last month, its General Counsel, Stuart Alderoty, declared that the filing marked the ultimate submission in the legal battle. Therefore, what remained was the final ruling from the court favoring Ripple.

  • John Deaton says XRP vs. SEC would only settle after a decision from Judge Torres.
  • The lawyer added that an exchange would be sued for selling unregistered securities.
  • The Ripple blockchain awaits a favorable decision from the US court this year.

Blockchain lawyer John Deaton recently aired his prediction about the crypto industry this year. Deaton declared that the multi-year legal battle between the Ripple blockchain (XRP) and the US Securities and Exchange Commission (SEC) would only settle after a decision from Judge Analisa Torres.

However, a few people misconstrued the lawyer. So he clarified that he meant a settlement that would eliminate any potential jury trial and appeal.

Deaton’s second prediction was that an exchange would be sued for selling unregistered securities, like in the case of XRP vs. SEC. He added that the current chairman of the SEC, Gary Gensler, would resign before 2023 ends.

In a tweet earlier this week, the crypto lawyer criticized Gensler for saying the Ethereum network token ETH could be considered a security contract under the Howey test. Notably, the Howey test determines whether an asset qualifies as an investment contract, subjecting it to federal security laws.

Gensler had claimed that proof-of-stake blockchains, such as Ethereum, Cardano (ADA), and Solana (SOL), could pass the Howey test. Under the test, a purchase is considered an investment contract if investors pledge their money to fund an enterprise to make profits from its efforts.

However, Deaton argued differently, stating that staking involves third parties independent of the investment promoter.

After Ripple filed a 65-page reply to the SEC’s opposition last month, its General Counsel, Stuart Alderoty, declared that the filing marked the ultimate submission in the legal battle. Therefore, what remained was the final ruling from the court favoring Ripple.

 

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