Deaton Says SEC v. Ripple Ruling Will “Be the Law of the Land” For Next 3 Years

Attorney Deaton asserts that Judge Torres’ decision on SEC v. Ripple case will be the law of the land for the next three years.

Pro-XRP lawyer John Deaton has highlighted the significance of the SEC v. Ripple ruling on the crypto industry. In an interview with Ash Bennington, the Crypto Editor of Real Vision, Attorney Deaton said the SEC v. Ripple ruling will remain the law of the land for the next two to three years.

Deaton explained that it may take up to three years before the case gets to the Second Circuit. Fox Business’ Eleanor Terrett shared Deaton’s remark via her Twitter handle yesterday.

Listening to @JohnEDeaton1 talking with @AshBennington on the likelihood of an @SECGov appeal on the @ripple decision:

"The thing to know is that this judge’s decision, unless there's an interlocutory appeal, is going to be the law of the land for the next 2-3 years because…

— Eleanor Terrett (@EleanorTerrett) July 17, 2023

SEC Disappointed With Court’s Ruling

Recall that Judge Torres issued the much-anticipated ruling on July 13. However, none of the parties got a total victory via the summary judgment.

While the judge ruled against the SEC for alleging that Ripple broke the law via its programmatic XRP sales, she ruled that Ripple’s direct past sales to institutional clients are securities. Judge Torres also ruled that XRP in itself is not a security.

Following the decision, top legal experts have speculated that one party will appeal the ruling. SEC Chair Gary Gensler expressed disappointment in the court’s decision, stating that the regulator is still assessing the ruling.

? BREAKING: Gary Gensler talks about the Ripple Vs SEC ruling.

Says the SEC is continuing to asses Judge Torres' opinion. #xrp $xrp #XRPCommunity #crypto #blockchain pic.twitter.com/GGvXSmFKBp

— Cryptic Poet (@1CrypticPoet) July 17, 2023

Gensler’s remarks indicate that the regulatory agency could appeal the ruling after its assessment. However, Deaton speculated that the judge would deny the SEC’s request for an appeal.

Furthermore, Deaton believes that without an interlocutory appeal, Judge Torres’ decision will remain the law of the land for the next two to three years.

Ex-SEC Director Thinks Otherwise

Meanwhile, former SEC divisional director Marc Fagel does not think so. Fagel described the ruling as a law from one district court – the Southern District of New York (SDNY) – adding that the ruling is not binding on other courts.

Notably, the ex-SEC director said the ruling could influence other crypto-related cases.

Deaton Provides Clarity

In response, Attorney Deaton provided further clarifications to his remark. Per Deaton, Judge Torres’ ruling will be the “law of the land” as regards the SEC v. Ripple case.

He also clarified that it could take up to three years before the judge will approve the SEC’s appeal request. Deaton speculated that the SEC would reference the LBRY ruling, where it recorded a total victory, to claim Judge Torres got her decision wrong.

I was talking about the law of the land in this case and how long it takes to get an appeal absent the judge agreeing (potentially over Ripple’s objection). We didn’t get into the different circuit courts etc. I’ve said that the SEC will point to LbRY and other cases and says…

— John E Deaton (@JohnEDeaton1) July 17, 2023

“We all know the SDNY is a bigger deal than the federal district court in New Hampshire, but the SEC isn’t likely to concede that publicly,” Deaton added.