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HomeCrypto NewsMarketDeaton Says Judge Torres Could Deny Both Ripple and SEC Summary Judgment Motions

Deaton Says Judge Torres Could Deny Both Ripple and SEC Summary Judgment Motions


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Attorney John Deaton has made another prediction about the ongoing lawsuit between Ripple and the Securities and Exchange Commission (SEC).

In a tweet today, attorney Deaton described the SEC’s claim regarding what constitutes a common enterprise in the case as a “schizophrenic argument” – a mental disorder causing the regulator to interpret reality abnormally.

According to Deaton, there is a likelihood that Judge Analisa Torres could deny both the SEC and Ripple’s summary judgment motions due to the regulator’s “schizophrenic argument” regarding the second prong of the Howey test (common enterprise).

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If this happens, Deaton asserts that the lawsuit’s presiding judge could rule that there is a genuine issue of material facts as to the existence of a common enterprise.”

Deaton Slams the SEC’s Common Enterprise Argument

Attorney Deaton’s recent assumption comes less than two weeks after he first stated the likelihood of Judge Torres denying the summary judgment motions of Ripple and the SEC.

“What some people have failed to consider is that Judge Torres could say denied to both summary judgment motions, and it goes to a jury,” Deaton noted in a Twitter thread. 

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He added that it is becoming difficult to predict events in the lawsuit since he is yet to read the underlying evidence relied upon and all Rule 56.1 facts.

Attorney Deaton has publicly slammed the SEC’s unstable argument regarding what constitutes a common enterprise in the Ripple case. The Crypto Law founder said the SEC was “all over the place” with the common enterprise argument.

Per Deaton, the SEC first labeled Ripple as a common enterprise, Deaton said. However, the regulator changed its argument after one of its experts testified that the common enterprise in the case includes the entire XRP ecosystem, including investors and crypto trading platforms.

Following opposition from Ripple and the XRP community, Deaton said the SEC abandoned the expert’s testimony. He added:

“Instead, the SEC argued XRP represents the common enterprise while also arguing XRP represents all of the promises and efforts made by Ripple.” 

Furthermore, Deaton says that the SEC would not be granted summary judgment in the way it presented its common enterprise argument.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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