XRP Lawsuit: US SEC Appeal Against XRP Ruling May Backfire

The XRP lawsuit, initiated by the US Securities and Exchange Commission (SEC) against Ripple Labs has been a subject of intense debate and speculation in the past few weeks. 

XRP Lawsuit: John Deaton Demystifies Key Facts

On Wednesday, the SEC decided to appeal the ruling in the case, adding a new layer of complexity to the saga. However, John E. Deaton, renowned XRP holder’s lawyer has stated that this move could potentially backfire and have unintended consequences for the SEC’s regulatory efforts.

Deaton highlighted in a recent tweet that the SEC’s recent motion is only a pre-motion letter submitted to Judge Analisa Torres, seeking permission to file a more detailed motion on the Court’s ruling. The objective of this process seems to be requesting permission to make an early appeal to the higher court (2nd Circuit Court of Appeals) before the underlying case is fully resolved. 

Everyone needs to understand what this is and isn’t! This is ONLY A PRE-MOTION LETTER. It’s asking the judge permission to file a formal motion asking for her to allow the SEC to then ask the 2nd Circuit Court of Appeals to accept an early appeal. It’s just like when I filed a… https://t.co/ujbpio8pUx

— John E Deaton (@JohnEDeaton1) August 10, 2023

This approach allows the SEC to potentially challenge aspects of the ruling that it disagrees with, even before the case is concluded at the lower court. 

Deaton went on to explain that even if the Judge grant the SEC’s pre-motion letter doesn’t mean the underlying motion would be granted as well, implying that the judge may allow further debate on the matter.

Furthermore, Deaton expresses a belief that Judge Torres is likely to grant the pre-motion letter, which would allow her to provide more detailed reasoning for her decision and potentially make it less susceptible to any further appeals.

The tweet also mentioned that this process could provide an opportunity for the judge to address any points raised by U.S. District Judge Jed Rakoff.

Deaton’s Involvement in Pending SEC Appeal

John Deaton mentions that he will wait to read Ripple’s response before making a final decision when asked if he will take part in the appeal. He added that the judge likely doesn’t want redundant arguments or points repeated by multiple parties. 

This suggests that he is closely monitoring the developments in the case and is interested in understanding Ripple’s perspective and arguments in response to the SEC’s request.