XRP lawyer John Deaton believes that the US SEC can appeal in the Ripple lawsuit, but he thinks there won’t be an immediate appeal.
There’s a debate about whether the U.S. SEC can appeal right away. Pro-XRP attorney John Deaton agrees that the SEC can appeal, but he believes it won’t happen immediately. He also notes that the SEC didn’t dismiss the case to expedite an appeal.
Pro-XRP Lawyer Deaton on Immediate SEC Appeal
On October 21, John E. Deaton joined the crypto community’s conversation regarding the U.S. SEC’s ability to appeal against Ripple immediately after dropping charges against Ripple executives, namely CEO Brad Garlinghouse and executive chairman Chris Larsen.
According to Deaton, with the SEC voluntarily dismissing its claims against Garlinghouse and Larsen, the trial set for April 2024 will not take place. He pointed out that the penalty phase of the case needs to conclude before the SEC can potentially file an appeal.
Although Ran is correct that an appeal by the SEC will happen sooner because the SEC chose to dismiss the case against @bgarlinghouse and @chrislarsensf (because the April 2024 trial will now not happen), it is incorrect to say the SEC can appeal immediately.
The penalty phase… https://t.co/kXoHL61yL3
— John E Deaton (@JohnEDeaton1) October 20, 2023
Using the LBRY lawsuit as an example, Deaton emphasized that after the summary judgment decision was made in November 2022, it took 8 months before an appeal to the judgment became possible. LBRY filed its appeal on September 7, following additional discovery, including interrogatories and document production requests. In the end, the SEC reduced the fines from $23 million to $130,000.
In the Ripple lawsuit, the SEC is seeking $770 million. Deaton believes that Ripple will argue that ODL (On-Demand Liquidity) transactions should be exempt from these charges, along with legitimate business expenses.
However, it’s unlikely that the SEC will file an immediate appeal. The regulator dismissed the case due to a lack of evidence for charges of aiding and abetting by Ripple executives. Deaton noted that the witness list for subpoenas to testify would have been interesting had the case proceeded.
Will Ripple Settle on XRP Institutional Sales?
With the trial against Ripple executives no longer scheduled, Ripple’s attorney has reached out to Judge Torres to discuss potential briefing schedules after November 9. Ripple is looking for a resolution regarding its violations of Section 5 security laws related to its institutional sales of XRP.
The possibility of a settlement appears more likely now, but Ripple still intends to challenge the SEC’s authority in regulating the cryptocurrency industry.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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