Top cryptocurrency lawyer John Deaton has expressed confidence that the Second Circuit will not reverse U.S. District Judge Analisa Torres’ decision in the SEC v. Ripple lawsuit.
The pro-XRP attorney’s confidence rests on the fact that no Judge Torres’s decision has ever been overturned on appeal, while Judge Rakoff’s decisions have been reversed by higher courts on over 50 occasions.
Read Also: Ripple CTO Analyzes Court’s Rejection of Judge Torres XRP Sales Distinction; Deaton Reacts
Deaton said this in a Twitter space hosted yesterday by Uphold, which had prominent crypto experts in attendance, including John Deaton, Simon McLoughlin, and Dr. Martin Hiesboeck.
Judge #Torres Summary Judgement has never been reversed on appeal. 😎🔥 https://t.co/UtXWHoOQtt
— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 8, 2023
Judge Torres’s Decision
In her decision, Judge Torres ruled that the company’s institutional past sales constitute investment contracts and found that programmatic sales on digital exchanges are not securities.
Several legal experts have criticized Judge Torres’ decision, including U.S. District Judge Jed Rakoff, who rejected her distinction of Ripple’s sales. However, Deaton is unfazed by the criticism, saying that he is “extremely confident” that her decision will not be reversed on appeal.
Zero Summary Judgment Overturned On Appeal
Deaton points to the fact that Judge Torres has never had her summary judgment reversed on appeal. He also notes that Judge Rakoff, who has criticized Judge Torres’s reasoning, has been reversed 56 times by a higher court.
Deaton also argued that the SEC was responsible for distinguishing XRP sales into three categories – institutional, programmatic, and other distribution. Since the SEC alleged that these sales were investment contracts, the judge strictly applied the Howey test to them.
“The Howey test says ‘it is immaterial’ whether the underlying asset is speculative or has intrinsic value,” Deaton said. “Are these [Howey] factors satisfied? She went and applied them to each one [XRP sales] and found what she did.”
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Deaton is so confident in Judge Torres’s decision that he is willing to place a “huge bet” that it will not be reversed on appeal.
“I’m willing to put a huge bet that her opinion does not get touched on appeal because all she did was apply that law to those different types of sales, and the results are the results,” Deaton said.
Top members of the XRP community have also reacted to Deaton’s comments, with pro-XRP lawyer Jeremy Hogan saying that it is “almost unheard of” for Judge Torres to be reversed on appeal.
Read Also: Congressman Claims SEC Won Ripple Lawsuit, Deaton Requests to Testify on Behalf of XRP Holders
“That’s like getting straight A’s from elementary through post-grad. Like, not even an A- in calculus,” he added.
The SEC has not yet commented on Judge Torres’ decision, but it is expected to appeal the ruling. The Second Circuit will ultimately decide whether to uphold or overturn Judge Torres’ decision.
In the meantime, Deaton’s comments have given XRP holders hope that the lawsuit will eventually be resolved in their favor.
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