Deaton Explains Where SEC Vs. Ripple Case Is Heading After Summary Judgment

Attorney John Deaton says Ripple will appeal any unfavorable ruling, as its case against the SEC may likely head to Supreme Court.

CryptoLaw founder attorney John Deaton made fresh speculation regarding the ongoing SEC vs. Ripple legal tussle. In his recently published CryptoLaw broadcast, attorney Deaton comments on Ripple’s possible next line of action if Judge Analisa Torres grants summary judgment in SEC’s favor. 

According to attorney Deaton, Judge Torres knows Ripple will appeal any unfavorable ruling, adding that the case may likely head to the US Supreme Court.  

“She [Judge Torres] knows Ripple is appealing if she rules in favor of the SEC […] Let’s face it, this case will go to the U.S Supreme Court most likely if it goes up on appeal,” Deaton added.

Attorney Deaton reiterated that Ripple’s summary judgment brief is written for the Appellate Courts. He stressed that the SEC might negotiate with Ripple to stop the company from appealing the ruling.

People have been speculating that the SEC vs. Ripple lawsuit could birth a new securities test, dubbed the Ripple test. Deaton said the Ripple test could go on to serve as a supplement to the existing Howie test- used to determine whether a transaction qualifies as an investment contract. 

Furthermore, Deaton stressed that there is a tendency the SEC might file a “notice of appeal” once the judge issues her summary judgment decision. However, Deaton thinks the commission may choose to negotiate with Ripple instead of appealing any unfavorable decision.

Why Hasn’t Judge Torres Ruled?

Per Deaton, the possibility of the case going up to the Supreme Court is one of the reasons why Judge Torres has yet to rule.

He explained that Judge Torres is taking her time to review the relevant information because she knows top US justices and the Second Circuit will review and decipher her ruling from the first day it is released.

Ripple’s General Counsel Says Ripple Will Appeal

Notably, Deaton’s remarks correspond with Ripple General Counsel Stuart Alderoty’s assertion. As reported earlier by the Crypto Basic, Alderoty said if Judge Torres grants summary judgment in SEC’s favor, Ripple will immediately file an appeal before the U.S. Courts of Appeal.

Alderoty expressed confidence that Ripple will win its case against the SEC at the Supreme Court due to the apex court guard against building an administrative state.