Ripple may benefit from new Supreme Court makeup in XRP lawsuit

Rick Steves

“The major questions doctrine holds that courts generally should not defer to agency statutory interpretations that concern questions of “vast economic or political significance.”

As the public awaits the court’s upcoming ruling on what may be the SEC’s final attempt to keep the Hinman-related documents away from Ripple, the public looks for clues as to how the case will play out.

One key influencer within the XRP community is John Deaton, the attorney who successfully acquired Amicus Curiae status for the XRP Holders in the SEC v. Ripple case and is currently representing over 67,000 of them.

“Major questions doctrine” weakens SEC’s statutory interpretations

John Deaton, who was a Twitter following of more than 200,000 users, has recently referred to attorney-influencer James K. Filan to remind the public that one should be thinking about the bigger picture when looking at the precedent-setting case that is SEC v. Ripple.

Deaton wrote the tweet in the context of the recent Supreme Court ruling restricting the U.S. Environmental Protection Agency’s (EPA) power to regulate carbon emissions.

The current makeup of the SCOTUS, which has also recently overturned Roe v. Wade, may be more prone to weaken the power of government agencies. This could be a threat to the SEC as the financial watchdog continues its regulation-by-enforcement practice. In case of an appeal, the current environment in the United States may be favorable to the defendants.

On 30 December 2020, one week after the filing of SEC v. Ripple, James K. Filan wrote: “When it comes to SEC v. Ripple, and all the different federal agencies trying to regulate crypto, start thinking about the bigger picture, like Chevron deference, the major questions doctrine and our new Supreme Court makeup.

“The major questions doctrine holds that courts generally should not defer to agency statutory interpretations that concern questions of “vast economic or political significance.” Why should just one agency get to decide questions of “vast economic or political significance?”, he continued.

“With the rapid evolution of crypto, why should one agency, wether SEC, FINCEN or DOJ get to set the rules instead of having specific Congressional guidance? Especially when they come to different conclusions. We can’t look at individual cases without more specific guidance. Crypto, like Ripple, is treated differently depending on the country. Yet how this case is decided is of worldwide economic and political importance. We can’t have one-off decisions. We need guidance if the U.S. is going to compete in this space.”

The question now is if crypto will be deemed as a question of vast economic or political significance to fit the “major questions doctrine” argument.

Read this next

Institutional FX

Binance delivers pricing and trading over MT4/5 with oneZero integration

Binance’s VIP & Institutional unit today announced a partnership with oneZero Financial Systems, a global multi-asset class software and infrastructure provider for institutional and retail brokers.

Institutional FX

BNY Mellon to leverage Baton System’s CCP network on its ECPO service

“The union of Baton’s extensive CCP connectivity with the ground-breaking functionality of BNY Mellon’s ECPO service forms a powerful offering to cleared derivatives market participants.”

Institutional FX

NYSE and Tel Aviv Stock Exchange to promote dual listings

“This major step is intended to foster collaborations between the two exchanges and to encourage the dual listing of Israeli companies in their home market and on the NYSE.”


TT’s KRM22 selected as risk technology partner of Chicago-based RCM

“Broad product coverage and effective risk analytics performance are essential to proper implementation of risk management and risk analysis.”

Industry News

DXtrade FX/ CFD Platform Integrated with Your Bourse for Turnkey Liquidity

DXtrade brokers received access to 30+ major banks and Tier 2 liquidity providers with Your Bourse.

Executive Moves

Wave hires Harumi Urata-Thompson as CFO of SEC-regulated crypto investment company

“With extensive experience leading teams across both the traditional finance and digital asset sectors, Harumi is well-equipped to provide our team with the immediate strategic insights needed to optimize our financial operations. She is a fantastic addition to our team as we continue to strengthen our position as one of the leading digital asset managers and to deliver sophisticated financial services to our clients.”

Retail FX enters United States as brokerage obtains license from FINRA

“We intend to be fully operational as a brokerage house in the U.S. by the end of H1 2023 and look forward to forging long term relationships with new business partners and clients.”


Pico launches Corvil Cloud Analytics as trading industry moves into cloud

“Since Corvil Cloud Analytics is software only, this accelerates our deployments and also provides an expedited avenue for proof-of-concept use cases. It’s now easier than ever for clients to access the platform so they can see firsthand what makes Corvil an industry leader in data analytics.”

Executive Moves

Finalto recruits Antony Parsons as head of liquidity

Finalto, the financial trading division of Gopher Investments, is making a broader push into the liquidity provision space, culminating in a new appointment focused on expanding the business into new markets.