Attorney John Deaton has shed light on the ongoing discussions within the U.S. Securities and Exchange Commission (SEC) regarding the possible appeal against Judge Analisa Torres’s ruling in the XRP lawsuit.
Crypto enthusiasts and legal experts have been engaged in debates over the SEC’s next course of action, with many anticipating an appeal. However, Deaton, the Managing Partner of the Deaton Law Firm, is not entirely convinced that the SEC will pursue this route, although he acknowledges it as a possibility.
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The SEC’s Internal Debate
According to Deaton, senior officials in the SEC are currently engaged in a heated debate over whether to file an appeal against Judge Torres’ decision. Some officials argue against an appeal, proposing instead that the SEC focuses on pursuing other tokens.
In this scenario, they suggest that the SEC can differentiate XRP from other cryptocurrencies, highlighting its unique story and characteristics. By doing so, the SEC would avoid the potential risks associated with having Judge Torres’ ruling affirmed by the Second Circuit.
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Conversely, other officials believe that the SEC should appeal the ruling due to its potential impact on the commission’s ongoing lawsuit involving the US-based crypto exchange, Coinbase. This litigation is also taking place in the Southern District of New York alongside the Ripple case.
Ramifications of Judge Torres’ Ruling
Deaton asserts that if the Second Circuit were to affirm Judge Torres’ decision, the SEC’s previously adopted regulation-by-enforcement approach in the crypto industry would come to an end.
Although the ruling would not bind other circuits, it would hold significant persuasive weight, potentially influencing other judges’ decisions in similar cases.
Read Also: John Deaton: Thousands of Investors Bought XRP With Zero Knowledge about Ripple
Timeline for Appeal and Alternative Options
Deaton’s insights follow legal expert James “MetaLawMan” Murphy’s prediction that the SEC will file an interlocutory appeal within the next two weeks. However, for such an appeal, the SEC would require permission from both Judge Torres and the Second Circuit, as unresolved issues remain in the case.
To bypass seeking approval from the judge, the SEC could drop its case against Ripple executives Brad Garlinghouse and Chris Larsen. Additionally, Murphy speculates that the SEC may opt for a trial or a settlement as its next course of action.
As the Ripple lawsuit continues to unfold, the entire crypto community eagerly awaits the SEC’s next move while keeping a close eye on the possible appeal and its repercussions for the industry at large.
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