SEC v. Ripple: Deaton Challenges Securities Lawyers Criticizing Judge Decision to an Open Debate

Attorney Deaton wants to debate securities lawyers who speculate that Judge Torres’ decision in the Ripple v. SEC will be overturned.

Attorney John Deaton, the Managing Partner of Deaton Law Firm, has issued an open challenge to engage in a debate with securities lawyers who hold the prediction that the Second Circuit will reverse Judge Torres’ ruling in the SEC v. Ripple case.

Deaton remarked in response to securities lawyers, who told Fox Business Senior Correspondent Charles Gasparino that Ripple’s victory would not stand on appeal.

Securities Lawyers Say Ripple Victory Will Be Reversed

For context, Gasparino took to Twitter last week to reveal that most securities lawyers he interviewed told him that Ripple’s victory does not stand on appeal.

Hate to break it to the XRP pumpers: @Ripple will be paying money on the part of the case it lost; plus there isn’t a securities lawyer I’ve interviewed who thinks the part they won stands on appeal. https://t.co/uzLDDZ1IF1

— Charles Gasparino (@CGasparino) July 15, 2023

However, Gasparino did not mention names, leaving the XRP community to speculate.

Deaton Invites Securities Lawyers For a Debate

Reacting, Attorney Deaton said he would not challenge Gasparino but focus on the unnamed securities lawyers making these predictions. Deaton challenged these securities lawyers to come out for a debate and stop whispering in people’s ears.

“My challenge is not to Charlie but to those lawyers. How about you come out of the shadows? Come on the record to Crypto-Law. Quit hiding behind the shield of off the record, and come talk,” said Deaton.

In today’s #CryptoLawTV livecast, @JohnEDeaton1 responded to the unnamed “securities lawyers” telling @CGasparino that the Torres decision was “crazy” and won’t hold up on appeal ?? pic.twitter.com/V04Op8qNpe

— CryptoLaw (@CryptoLawUS) July 25, 2023

The pro-XRP lawyer noted that he is willing to meet with these securities lawyers anywhere, as long as it will be broadcasted live.

“We’ll have the debate. You want to call Judge Torres’ decision crazy and bizarre? Let’s talk about it. We know you won’t,” he added.

The pro-XRP lawyer has reiterated that Judge Torres’ ruling will not be reversed, as she performed a straightforward application of the Howey test to all XRP transactions the SEC alleges to be securities.

SEC Top Appointments Are By Political Connections, Not Experience

Furthermore, Deaton asserted that SEC appointments, especially the chairmanship position, are based on political connections, not experience.

“When you get picked to be the SEC Chair or Director of Corporation Finance, it is not because you’re the most experienced securities lawyer in the world. It’s because you [have] political connections,” he said.

Deaton recounted how former president Donald Trump selected Jay Clayton as SEC chair due to the latter’s political connection. Deaton also highlighted Gary Gensler’s political connection that helped him become the chairman of the SEC.

Per Deaton, Gensler was the Chief Financial Officer of Hilary Clinton’s campaign, adding that he is heavily connected to the Democratic party. Deaton said that since the Democratic party won the election, Gensler was appointed SEC Chair.

“[These appointments] have nothing to do with experience and knowledge of the law,” Deaton remarked.

The attorney also recalled William Hinman revealing how Clayton appointed him to become the director of SEC’s Corporation of Finance due to their friendship.

Attorney Deaton shared Hinman’s deposition during the Ripple case to showcase that most securities lawyers are not too knowledgeable about the law.

During the deposition, Hinman opined that satisfying all Howey factors to determine an investment contract is unnecessary.

“If Hinman was correct, why did Judge Torres say in footnote 13 [of the ruling that she] won’t get to the other two factors [of Howey test] because the third factor was not satisfied?” Deaton added.