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

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<