John E. Deaton – a US attorney representing thousands of Ripple investors in the lawsuit against the US Securities and Exchange Commission (SEC) – does not see how the regulator will prevail.
He described the agency’s claim that it wants faster adjudication than the blockchain enterprise as the “dumbest argument” he had heard. In his view, the SEC’s only option is to prolong its inevitable loss by appealing the court’s decision whenever possible.
The SEC’s Desperate Tactics
The lawyer recently published an essay depicting the SEC’s potential strategy in the infamous legal battle versus Ripple. According to him, the partial win the crypto firm secured in mid-July has been a significant milestone and will most likely lead to a decisive victory.
Recall that a US Judge ruled that Ripple’s XRP sales did not constitute an offer of investment contracts. A decision that boosted the price of the digital asset by over 70%.
The SEC, though, did not back down and formally appealed the ruling at the beginning of September. Deaton believes that even if the requests get granted, it will still not be enough for the watchdog to win the case, as Judge Torres will once again rule in favor of Ripple by fully explaining her “reasoning.”
“Should an early appeal be granted, it will take another year and a half to two years for the US Court of Appeals for the 2nd Circuit to rule on the issue. If the SEC were to win at the 2nd Circuit, which I believe they won’t, then the case gets remanded back to Judge Torres, who would apply the facts of the case to the other Howey factors not yet analyzed.”
In other words, the agency can appeal the decisions that are not in its favor as long as it has the chance, but they will have no effect on the final resolution. “The SEC will spitball separate arguments from ongoing cases into its appeal process—delaying litigation across the board. These are the desperate tactics of a regulator who lost the case,” Deaton concluded.
What Could Happen if Ripple Emerges Victorious?
Numerous experts have predicted that the outcome of the prolonged lawsuit between the two entities will significantly impact XRP’s price.
One such person is the crypto analyst using the X (Twitter) handle KALEO. According to them, the SEC’s appeal will hit a dead end, which will eventually trigger a price rally for Ripple’s native token.
CryptoPotato also released a video dedicated to XRP and, more specifically, how the asset could perform during the next bull market. Those wishing to find out more can click on the clip below:
The post Ripple v. SEC: Pro-XRP Lawyer Says This is the Regulator’s Dumbest Argument appeared first on CryptoPotato.
