SEC Set to Lose Lawsuit Against Ripple: Crypto Lawyer John Deaton

Allgemein

Summary

  • Crypto lawyer John Deaton is confident that the U.S. Securities and Exchange Commission (SEC) will lose its case against Ripple.
  • Deaton has pointed out four instances where different judges dismissed the SEC’s arguments as meritless and even reprimanded their ethics and behavior.
  • SEC Chair Gary Gensler’s proposed approach of using the outdated Howey Test to prove that cryptos require registration sparks concern among legal experts.

John Deaton’s Statement on SEC vs Ripple Lawsuit

CryptoLaw founder John Deaton, who is a pro-XRP lawyer, recently expressed his belief that the United States Securities and Exchange Commission (SEC) would lose its case against Ripple. This statement was in response to a tweet by former SEC enforcement official John Reed Stark about the regulator’s crackdown on US-based cryptocurrency exchanges.

Deaton supported his assertion by mentioning four instances where different judges found the SEC’s arguments to be meritless. He claimed that in the Ripple lawsuit, the judge shamed the SEC for not having a faithful allegiance to the law. The legal expert also mentioned SEC cases against LBRY, Grayscale, and Voyager, where judges dismissed the regulator’s arguments as lacking clarity or making no sense, and even reprimanded the SEC’s ethics and behavior.

Gary Gensler’s Approach Sparks Concern

SEC Chair Gary Gensler recently testified before the House Finance Committee revealing his understanding of regulatory duty which implies that he might find grounds for a crackdown on cryptocurrencies in various circumstances such as Twitter appearances, software updates, or legal teams which he believes can be considered sufficient evidence of suspecting crypto assets as securities requiring registration.

Challenges with Outdated Howey Test

Deaton further pointed out that Gensler seems content with using outdated methods such as Howey Test from first half of 20th century to try and prove that all cryptos–apart from Bitcoin–must be illegal without approval from SEC. Additionally Deaton criticized how crypto projects must seek contact with authority but ultimately do not receive resilient legal information about their status.

Conclusion

John Deaton remains confident that because of numerous issues with regards to ethical conduct along with lack of strong evidence on behalf of SEC they will eventually lose their case against Ripple.