XRP Lawsuit: John Deaton Reveals What Ripple & SEC Must Do For A New Judgment

Highlights

According to John Deaton, SEC needs to acknowledge error on XRP security status.
SEC must argue no harm from XRP sales to justify lifting injunction, says Deaton.
Fred Rispoli suggests the SEC file a 25-page motion highlighting dropped similar cases.

Judge Analisa Torres’ crucial ruling on Thursday in the Ripple vs. SEC lawsuit has sent shockwaves through the XRP community. While Judge Torres denied the XRP lawsuit motion for an indicative ruling, experts like John Deaton, Bill Morgan, and Fred Rispoli have shared their views on what is next.

Notably, XRP lawyer John Deaton outlines necessary steps both parties must take before Judge Torres can amend the XRP lawsuit judgment. At the same time, legal expert Bill Morgan reflected on six pertinent questions regarding the potential developments within the Ripple case.

What Ripple & SEC Must Do For A New Judgment In XRP Lawsuit

In a live broadcast, John Deaton stated that the SEC will have to admit its mistakes and resign from its previous arguments if both parties are to get a new judgment in the XRP lawsuit. He added that the Commission would have to work with Ripple and cite bills currently in Congress relating to digital assets.

In doing so, the agency would state that crypto assets are similar to commodities rather than securities and do not necessarily fall under the SEC’s purview. As CoinGape reported, Judge Torres had denied the Ripple SEC motion on the ground that it was “procedurally improper.” The SEC had asked the court to grant Ripple relief from the injunction and also reduce the civil penalty to $50 million.

For Judge Torres to grant this request, Deaton believes that the SEC would have to argue that Ripple’s XRP sales didn’t hurt anyone and that the injunction limits the crypto firm’s business since they would like to sell the altcoin to financial institutions. He also remarked that they must argue that the injunction only hurts an American enterprise and the other businesses that want to do business with Ripple.

As Judge Torres noted, in granting the motion for an indicative ruling, the district court must “determine whether the proposed consent decree is fair and reasonable, with the additional requirement that the public interest would not be disserved in the event that the consent decree includes injunctive relief.”

Another Legal Expert Shares Thoughts On What Both Parties Must Do

Legal expert Fred Rispoli echoed a sentiment similar to John Deaton’s, noting that a new judgment in the XRP lawsuit won’t be easy. As to what both parties must do, he stated they should file a 25-page motion, describing all the other cases they have dropped.

He also advised that the SEC file declarations from the Commissioners and describe the Commission’s failures to do meaningful work on crypto guidance. The legal expert opined that the agency would likely make this move, although it could take at least two to three weeks for Ripple and the SEC to put together their arguments and refile the motion. Rispoli added that it would take another week or two for Judge Torres to rule.

In addition to John Deaton and Fred Rispoli, XRP lawyer Bill Morgan shared insights on the possible procedures following Judge Torres’ critical decision. The lawyer is currently anticipating if both parties should file another motion under Fed.R.Civ.P 60 or the SEC needs another commissioner vote for the XRP lawsuit settlement.

The XRP price dropped over 4% following Judge Torres’ latest ruling in the XRP lawsuit. At the time of writing, the altcoin is trading at around $2.40, down almost 2% in the last 24 hours.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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