Ripple lawsuit might end in August with ruling on XRP – John Deaton

Rick Steves

“The SEC has only one area of leverage over Ripple: delay. This is Ripple removing the last bullet from the SEC’s gun”. 

As Ripple and the SEC prepare for the next chapter in the XRP lawsuit following the court’s final ruling on the deliberative privilege process – ordering the SEC to ultimately produce emails and notes related to the 2018 Hinman’s speech – John Deaton has turned to Twitter to provide some insights on what to expect.

John Deaton, an attorney that represents over 65,000 XRP Holders in the SEC v. Ripple, has previously said that the lawsuit would come to an end within 90 days from Judge Torres affirming Judge Netburn’s decision.

“I still stand by that, however, I didn’t really consider Ripple insisting on Summary Judgement without the emails and documents. In hindsight, it makes sense”, he stated.

XRP lawsuit ends by Judge ruling, not settlement

“The emails and documents are most relevant to fair notice. Ripple can win on a strict Howey analysis and, if they do, the Court never has to decide whether Ripple received fair notice. I can now see there being no settlement and the parties let the judge decide via Howey”, he continued, adding that settlement is less likely than the XRP lawsuit ending with a Judge decision.

“In other words, view the fair notice defense as insurance. It’s an issuance policy that kicks in if Ripple loses on a Howey application. Thus, I’m leaning on no settlement and a decision by the judge. The timing of a decision depends on how long it takes Judge Torres to decide”.

John Deaton further explained that the Securities and Exchange Commission has much more to lose if Ripple wins on fair notice and will keep on delaying as much as possible. By focusing on a Howey analysis, Ripple removes “the last bullet from the SEC’s gun”.

“I can assure you the SEC would rather lose the case on a strict Howey analysis than on fair notice. If she rules Ripple lacked fair notice, most Altcoins, traded for the last 7 years, have a blueprint for victory. If the Court finds XRP not a security, it applies only to XRP.

“Ripple could also move for partial summary judgment on certain issues. For example, Ripple wants to win on a straight Howey analysis before ever getting to the fair notice issue. Maybe Ripple moves for summary judgment on today’s XRP.

“Bottom line, this is a smart move”, he continued. “The SEC has only one area of leverage over Ripple: delay. This is Ripple removing the last bullet from the SEC’s gun”.

XRP lawsuit ends in August, best case scenario

John Deaton added that, absent a settlement, “I believe best case scenario for a ruling is late August. Worst case: just prior to Christmas because I believe the Judge would be sensitive to the 2-year anniversary.

In the meantime, the SEC has requested a two-week delay to file an objection to Judge Netburn’s non-reconsideration of her past ruling on DPP. While that is unsurprising, the plaintiff noted that Ripple wants to proceed with summary judgment instead of waiting for the back and forth on the issues relating to fair notice. Something which Ripple has previously called “gamesmanship”.

According to John Deaton, attorney for the XRP Holders, the “biggest decision in the XRP lawsuit” was even bigger because the judge wrote a “bullet-proof” ruling that prevents the SEC to obtain an appeal for the DPP ruling.

Click here for more news on Ripple and XRP. 

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎


Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.


FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.