- Attorney John Deaton predicts that the SEC vs. Ripple ruling will establish a precedent for the next three years in the crypto industry.
- While the SEC may consider appealing the decision, Deaton believes the judge will deny their request.
In a recent interview with Real Vision’s Crypto Editor Ash Bennington, attorney John Deaton emphasized the significance of the SEC vs. Ripple ruling and its impact on the cryptocurrency industry. According to Deaton, this ruling will serve as the law of the land for the next two to three years. His comments were shared by Fox Business’ Eleanor Terrett on Twitter.
Eleanor Terrett tweeted: ”
Listening to @JohnEDeaton1 talking with @AshBennington on the likelihood of an @SECGov appeal on the @ripple decision:
"The thing to know is that this judge’s decision, unless there's an interlocutory appeal, is going to be the law of the land for the next 2-3 years because…
— Eleanor Terrett (@EleanorTerrett) July 17, 2023
Marc Fagel responded to the tweet, stating:
https://twitter.com/Marc_Fagel/status/1680980351471202304
Judge Torres’ Decision and Its Implications
On July 13, Judge Torres delivered her highly anticipated ruling on the SEC vs. Ripple case. While neither party achieved a complete victory through summary judgment, the judge sided against the SEC’s claim that Ripple had violated the law with its programmatic XRP sales. However, she ruled that Ripple’s direct sales to institutional clients qualified as securities, while determining that XRP itself is not a security.
Expectations of Appeals and Disappointing Reactions
Legal experts have speculated that one of the parties involved in the case will likely appeal the ruling. SEC Chair Gary Gensler expressed disappointment with the court’s decision and mentioned that the regulator is currently evaluating its options. Deaton, on the other hand, believes that Judge Torres will reject the SEC’s appeal request, denying them the opportunity to challenge her decision.
Conflicting Opinions: Deaton vs. Fagel
Deaton’s viewpoint aligns with Eleanor Terrett’s tweet, stating that the judge’s decision will stand as the law of the land for the next 2-3 years, given the absence of an interlocutory appeal. He further emphasized that it will take time before the case reaches the second circuit.
However, Marc Fagel provides a contrasting perspective, noting that the ruling is specific to the Southern District of New York (SDNY) court and is not legally binding on other courts. Nevertheless, Fagel acknowledges its influence due to being the only judicial decision on crypto trading through exchanges.
Clarity from Attorney Deaton
Attorney John Deaton, in response to Fagel’s remarks, maintains his stance regarding the impact of Judge Torres’ ruling. He reiterates that the ruling will indeed be the “law of the land” concerning the SEC vs. Ripple case and highlights the potential duration of up to three years before the judge approves the SEC’s appeal request. Deaton also speculates that the SEC may reference their successful outcome in the LBRY ruling to contest Judge Torres’ decision.
With the SDNY court holding significant influence, Deaton believes that the SEC is unlikely to publicly admit its importance. Therefore, he maintains that the SEC vs. Ripple ruling will shape the industry landscape for the next two to three years.
