- John Deaton shared that Judges Torres can potentially deny judgment summary for Ripple vs SEC case.
- He called the US SEC’s argument against Ripple “schizophrenic.”
- Deaton claims that the SEC didn’t receive summary judgment in the manner they desired.
Crypto Law founder and Deaton Law Firm managing partner John E Deaton posted a thread of tweets discussing The US Securities and Exchange Commission’s “schizophrenic argument regarding what constitutes the common enterprise in the Ripple case.” He opinionated that there is potential for Judge Torres to deny the summary judgment and rule that there is a genuine issue of material facts as to the existence of a common enterprise.
Earlier this month, Deaton retweeted a crypto influencer’s tweet on how Ripple could lose the lawsuit due to the firm’s lack of a good argument. The advocate replied with a possible scenario where the judge could declare an “outright win” for the crypto company.
Specifically, Deaton tweeted:
People are focusing on the pre-1933 Blue Sky argument. That argument is for the 2nd Circuit and Supreme Court. I don’t believe Judge Torres agrees with that argument although the current Supreme Court could.
Moreover, Deaton claims that the judge could understand Ripple’s XRP sales since the US SEC didn’t apply the Howey test to each and every transaction, while applying the old “But For” causation test in this case.
According to Deaton, The SEC argues “but for” Ripple executives Jed Mc Caleb and Chris Larsen creating XRP, XRP wouldn’t exist. He adds that the SEC argues if a country outside of the U.S. jurisdiction announces XRP as a currency it will only be on account of Ripple’s efforts.
Deaton concludes that the Judge can only declare Ripple a winner if it simply rejects the SEC’s sweeping claims. Thus, he is confident that the SEC is not granted summary judgment in the manner they have requested and no more predictions can be made until the lawyer gains access to all the Rule 56 facts and evidence.