John Deaton, a well-known attorney and founder of CryptoLaw, recently shared his insights on the simmering legal battle between Ripple and the SEC. In his latest CryptoLaw broadcast, Deaton speculated on the possible trajectory of the case, highlighting that it could likely end up in the US Supreme Court.
Ripple to Battle Unfavourable Rulings
According to Deaton, if Judge Analisa Torres were to grant a summary judgement in favour of the SEC, Ripple would not take this lying down. “She [Judge Torres] knows Ripple is appealing if she rules in favour of the SEC […] Let’s face it, this case will go to the U.S Supreme Court most likely if it goes up on appeal,” Deaton declared.
Crafting the Legal Strategy for Higher Courts
Deaton pointed out that Ripple’s summary judgement brief is designed with the Appellate Courts in mind, implying a long-term legal strategy. Interestingly, he also mentioned that the SEC might try to negotiate with Ripple to prevent them from appealing any ruling.
Also Read – Top Crypto Lawyer Reveals New Verdict Date for Ripple-SEC Case
A New Ripple Test on the Horizon?
As the Ripple lawsuit continues to unfold, Deaton suggested that it could give birth to a new securities test, aptly named the “Ripple test.” This could supplement the existing Howie test, which is currently used to determine whether a transaction qualifies as an investment contract.
While the SEC could theoretically file a “notice of appeal” once Judge Torres issues her summary judgement decision, Deaton speculated that they might instead choose to negotiate with Ripple to avoid an appeal.
Why the Delay in Judgement?
Deaton believes that the prospect of this case reaching the Supreme Court is one reason for Judge Torres’s delay in issuing a ruling. Given that her decision would be scrutinized by top US justices and the Second Circuit, she is likely taking her time to ensure her ruling is as comprehensive and foolproof as possible.
Echoing Deaton’s remarks, Ripple’s General Counsel, Stuart Alderoty, has already confirmed that Ripple will immediately file an appeal if Judge Torres grants a summary judgement in the SEC’s favour. Alderoty expressed confidence in Ripple’s ability to win its case against the SEC at the Supreme Court, citing the court’s tendency to guard against building an administrative state.
