Pro-XRP Lawyer Predicts SEC Loss in Ripple Lawsuit – Summary Judgment Decision Imminent
John Deaton, a pro-XRP lawyer, recently shared his opinion on the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
In an interview with Fox Business, Deaton said he “wouldn’t be surprised” if there’s a summary judgment decision on the case in the coming days or weeks.
Deaton believes the case won’t end well for the SEC, saying:
“I think the SEC is going to lose, but that doesn’t mean Ripple is going to get an outright win either. But I think the SEC is going to lose at summary judgment because of the theory that they went with… Normally, when you go after a promoter, you say ‘On this particular day, you made an unregistered securities offering or sale. And that particular transaction was a security, an investment contract.’ And now they’re saying that all sales of XRP — the token itself — is a security.”
The SEC filed the lawsuit against Ripple Labs in December 2020, alleging that the company had sold XRP as an unregistered security for years. Ripple has denied the allegations and has been fighting the case in court.
On Tuesday, Judge Analisa Torres issued a 57-page ruling on the SEC and Ripple’s motions to exclude expert testimony from summary judgment. The ruling was mixed, with some parts siding with Ripple and others with the SEC.
READ MORE: Binance NFT Adds Support for Polygon (MATIC)
Ripple’s general counsel, Stuart Alderoty, commented on the ruling:
“Yesterday’s opinion from the Court on Ripple and the SEC’s proposed expert opinions – if you didn’t read all 57 pages, here’s the TLDR…Specifically – not only is the SEC’s expert on ‘reasonable expectations of an XRP purchaser’ struck from the record, but so is their expert who tried to say what ’caused’ the price of XRP to change.
On the flip side – our experts that explain how Ripple’s contracts clearly differ from those in ‘Howey,’ tax treatment of XRP (not a security), accounting treatment of XRP (not a security), and currency experts on XRP (not a security) are all allowed to stay in.”
Deaton has been actively involved in the lawsuit and has filed an amicus brief on behalf of XRP supporters in opposition to the SEC’s motion for summary judgment. His views on the case are closely watched by XRP investors and enthusiasts alike.