Since the curtain is open, SEC has few moves in Ripple vs. SEC. Our previous analysis explored the potential for the SEC to regroup after losing the interlocutory card. Is there someone who says the SEC will not take a trial path? Here’s why.
Pro-Ripple legal expert John Deaton, known for his spot-on predictions, decodes a surprising twist in the XRP lawsuit. Despite a trial date set for April 2024 after the District Judge shot down the SEC’s bid for an early appeal, Deaton boldly predicts a trial might not even happen.
Why? He has slender odds of SEC success, backed by weak evidence and hefty legal costs. The plot thickens, and the courtroom drama promises more surprises ahead.
The SEC is in Pool of Questions?
It is pretty evident so far that neither the SEC nor Gary Gensler has given any direct answer on various loopholes shown by the opponent. In a compelling discussion during a recent interview,
Deaton questioned the real motives behind the SEC’s case, stating that “they died the moment they filed the case.”
He hints that the SEC intends to force the securities laws but perhaps for other undisclosed reasons. This raises further questions about the SEC’s credibility and objectives in this landmark case.
The SEC is likely to consider settlement talks with Ripple to end the legal battle, though it might be a tough call for regulators. Ripple’s case sets a precedent but doesn’t ensure similar outcomes for others.
Deaton’s Stance on the Technicalities
Deaton sees the recent decision as a significant setback for the SEC, making a trial unlikely. He questions how the SEC can prove its case when it’s against the law. XRP is considered innocent until proven otherwise. Deaton suggests the SEC might consider a settlement or drop the charges altogether to avoid the complexities of a trial. He also advises the SEC to hire a good lawyer if they aim to win.
“Do they want all that Hinman stuff and the drama of a trial?” questioned Deaton, highlighting the complexities involved.
Additionally, Deaton notes that the SEC is involved in other major legal battles with companies like Coinbase and Binance, diverting resources and adding complexity to their efforts. Deaton expresses confidence in Coinbase’s chances of winning but has reservations about Binance’s future trial outcome.
XRP Ruling cannot be Tagged in All Cases
However, legal expert John Deaton points out that this ruling’s scope is limited to XRP, not offering broader protection for other tokens. This leaves many projects in a regulatory gray area, potentially discouraging innovation in the U.S. While a step forward, the crypto industry still seeks comprehensive regulatory clarity for sustained growth and leadership in blockchain technology.