Attorney John Deaton said that even if Judge Torres certifies the SEC’s appeal and stays the Ripple lawsuit, XRP trading cannot be considered a security.
Renowned cryptocurrency lawyer John Deaton continues to clarify issues surrounding XRP’s non-securities status. In a recent tweet, the spokesperson highlighted a misconception about the fate of XRP trading if the court grants the SEC’s interlocutory appeal.
One news outlet said that if Judge Analisa Torres approved the SEC’s motion for appeal: “Most XRP trades could still be securities trades.”
Deaton said it was a false allegation, adding that it amounted to full FUD (Fear, Uncertainty and Doubt).
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According to Deaton, even if Judge Torres decides to certify the SEC’s interlocutory appeal and stay the Ripple lawsuit, that doesn’t mean most XRP trades are securities.
“That would make us assume it is, just because the SEC claims it is. he added.
The article states:
“In short, most XRP trades can still be securities trades.”
This is not true and is complete FUD. Even if Judge Torres grants an interlocutory appeal and agrees to stay the case (huge assumptions, especially the stay), it’s… https://t.co/o7VLWbszUo pic.twitter.com/5T0H57UC8A
— John E Deaton (@JohnEDeaton1) August 11, 2023
SEC claims are not law
In addition, Deaton shared documents showing that the SEC recognized Judge Torres as the sole forum for validating its allegations.
A pro-XRP attorney added that the judge tested the SEC’s theory under Howie and rejected it. Deaton argued that anything the SEC claims is a security is not law.
SEC Requests Interlocutory Appeal
It’s worth noting that the SEC has indicated plans to appeal Judge Torres’ ruling regarding Ripple’s XRP sales to retail investors.Last week, regulators took formal steps to demanding Permission to file interlocutory appeals.
Notably, the SEC’s appeal focuses on Ripple’s programmatic XRP sales in the secondary market and other secondary markets, as the judge ruled that both transactions did not qualify as securities.
According to the SEC, Ripple’s XRP programmatic sale decision raises questions such as: “managing questions of law on which there are substantive grounds for disagreement” As reflected By Jed Lakoff in SEC v. Terra.
Recall that Judge Lakoff rejected Judge Torres’ distinction between institutional and retail purchasers of XRP. Judge Lakoff said the Howie test does not distinguish between the types of buyers that Judge Torres has drawn in his ruling.
XRP Lawyer Says Judge Torres Did No Mistake
Judge Lakoff’s remarks cast doubt on the Ripple ruling, with many suggesting that Judge Torres was wrong. However, pro-XRP attorney Bill Morgan shared documents showing that the SEC is responsible for separating Ripple’s XRP sales into three categories: programmatic sales, institutional sales, and other distribution. .
According to Morgan, Judge Torres followed the SEC’s classification of Ripple’s sales and applied the Howie test to them.React, Deaton Said He will bet a lot of money that the Second Circuit will not overturn Judge Torres’ decision.