Legal expert and pro-XRP advocate John Deaton shared his thoughts on the ongoing legal battle between Ripple and the SEC, offering insight into what happens next. As the case continues to drag in court while the SEC is undergoing leadership changes with Gary Gensler’s resignation, many investors are watching closely for the update.
At the Good Morning Crypto Show, Deaton said the SEC does not have a strong case for appealing the court’s decision. The SEC might be unhappy with the outcome, especially since over 75,000 XRP holders have supported Ripple.
However, Deaton believes that the appeal of the SEC is weak. In the past, Judge Torres decided that the SEC did not meet certain requirements. Even if the case is appealed, the outcome is likely to be the same, implying that Ripple may win again.
Additionally, he thinks that if the case is heard by the Second Circuit Court, Ripple will most likely win. And if the SEC somehow wins there, the case could go to the Supreme Court, resulting in more delays.
Deaton noted that some SEC officials, including the acting director and Paul Atkins, who has criticized the SEC’s position, could push to dismiss the case. If three out of five SEC commissioners vote in favor, the case could be dropped. This would reflect the growing recognition of XRP as a legitimate cryptocurrency, similar to others in the market.
The SEC has appealed a federal court’s decision. It is requesting that the appeals court overturn Judge Analisa Torres’s July 2023 decision, which stated that XRP sales to retail investors were not unregistered securities.
On January 15, the SEC argued in the Second Circuit Appeals Court that the New York District Court that the earlier decision was incorrect and wanted to overturn it.
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