Ripple News: XRP Lawyer Mocks SEC’s ‘Desperate’ Appeal Attempt

John Deaton, on September 28th, posted a brief article on Crypto Law, a U.S. government website titled ‘U.S. Legal and Regulatory News for Digital Asset Holders,’ taking a critical stance on the SEC’s recent interlocutory appeal move.

We’ve broken down everything he had to say and what it means for the crypto community. Read on.

Hailing Ripple’s Win

Deaton’s post began by acknowledging Ripple’s significant victory against the SEC in July. However, he pointedly criticized the SEC’s inability to accept this defeat gracefully. Instead, the regulatory body chose to file a letter seeking an interlocutory appeal before Judge Torres.

In a pre-motion letter, the SEC laid out its intentions to pursue an interlocutory appeal against Judge Torres’s ruling. This judgment had found that the defendants’ programmatic and other XRP sales violated the Howey test.

Also Read: “You Have to Stand Up to a Bully”: Ripple CEO Garlinghouse Celebrates Legal Victory

SEC Got Its Way – Or Did It?

According to John Deaton, he expected Judge Torres to grant the request, which later came true. He feels the action allows the judge to clearly explain her thinking in the case, making it “appeal-proof,” as well as allowing her to answer whatever Judge Jed Rakoff has stated. 

In the SEC v. Terraform Labs case, Judge Rakoff denied the company’s petition to dismiss and disagreed with Judge Torres’ approach to Howey. The SEC claims that Torres’ decision might have an influence on their other comparable litigation. However, this is their weakest argument.

Currently, there are many cases that are connected in the crypto ecosystem, and each case sets a solid precedent for the cases that haven’t yet received a decision. For instance, Do Kwon and the LBRY case are developing a whole new defense based on the judge’s decision, demonstrating how crucial the case is overall.

What Does the Future Hold?

The ruling from Judge Torres has set a significant precedent by recognizing the potential impact of decentralized technologies on free speech and innovation. As more cases emerge, the crypto ecosystem eagerly awaits further rulings that could shape the future of this rapidly evolving industry. 

According to Deaton’s opinion, the SEC’s request for an appeal is a “desperate tactic of a regulator who lost the case.” 

Read More: SEC Chair Gensler Mocks Crypto Industry With Fraud Allegations; Ripple CLO Responds

This is Important for You!

Furthermore, Deaton’s statement implies that the outcome of this appeal carries immense consequences not only for the immediate parties involved but also for the broader crypto community. This marks a pivotal moment in the ongoing struggle between regulatory bodies and cryptocurrency enthusiasts, with both sides prepared to vigorously defend their positions in this high-stakes battle.