Attorney John Deaton is convinced that the SEC will lose its legal battle with Ripple in the ongoing lawsuit. Deaton represents XRP holders as amicus curiae (friend of the court) in the ongoing case. The attorney believes the loss will shut down the SEC’s “gross overreach.” The attorney pointed out to the Virginia vs. EPA lawsuit to support his beliefs.
Deaton’s opinion came as a comment to Ripple’s Chief Legal Officer Stuart Alderoty’s tweet about the financial watchdog losing 4 out of its 5 cases in the Supreme Court. Furthermore, Deaton has said that the summary judgment brief in the lawsuit is an “extremely well-written appellate brief.”
Will the “David” Ripple defeat the “Goliath” SEC?
The future of digital currencies might be impacted by the legal dispute between Ripple and the SEC. If the SEC wins the case, it will succeed in classifying the sale of XRP as a security.
Moreover, Deaton criticized the regulatory agency‘s claim that everyone who purchases XRP in Japan is part of a common enterprise with Ripple and all other XRP holders. The SEC also maintains that the token qualifies as a security. However, the Financial Services Administration of Japan has said that XRP is not a security.
Ripple did offer XRP as a security from 2013 to 2017. Deaton previously claimed that the SEC’s case against Ripple would only see victory in that argument.
The SEC has already successfully penalized Kraken $30 million for its staking program. Moreover, the watchdog is likely to impose charges on Paxos for BUSD issuance. The SEC also refers to BUSD as security. Yet, Ripple and other companies have garnered a great deal of public support since these cases are essential to the sector’s development.