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HomeCrypto NewsMarketDeaton Wants to "Bet Significant Funds" On Ripple Victory Against SEC's Appeal 

Deaton Wants to “Bet Significant Funds” On Ripple Victory Against SEC’s Appeal 


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Attorney Deaton expressed confidence that Ripple will be victorious against the SEC’s appeal, adding that he is willing to place a significant bet.  

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In a recent tweet, Attorney John Deaton, the Managing Partner of the Deaton Law Firm, said he is willing to bet big on Ripple winning the SEC’s appeal. 

The pro-XRP lawyer referenced a detailed thread by top Australian lawyer Bill Morgan. 

Judge Torres Didn’t Err in Ripple Ruling

In the thread, Attorney Morgan said he could not see how Judge Analisa Torres erred in her summary judgment decision. 

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According to Morgan, the SEC categorized Ripple’s XRP sales into three different categories- programmatic sales, institutional sales, and other XRP distributions- and the judge analyzed each by applying the Howey test. 

Following the analysis, the judge found major differences in each category. For instance, the judge found that institutional investors signed contracts with Ripple and expected to make profits from the company’s efforts. 

However, programmatic sales on exchanges did not involve signing contracts, and buyers did not expect to make gains directly from Ripple’s efforts. 

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Consequently, Judge Torres found Ripple’s XRP sales to institutional investors as securities and ruled that programmatic sales on digital exchanges are not.  

Deaton Wants to Bet On Ripple Victory 

Reacting, Attorney Deaton commended Morgan for explaining that Judge Torres did not distinguish between Ripple’s XRP sales out of “thin air.” 

According to Deaton, the judge took each sale the SEC alleges as securities and applied the Howey test. 

To express his confidence in the ruling, Deaton said he is willing to bet significant funds that Judge Torres would not be reversed on appeal. 

Reactions Trail Judge Torres’ Decision 

It is worth noting that Judge Torres’ ruling, especially her distinction of Ripple’s sales, has been stirring mixed reactions. While some commend her for appropriately applying the Howey test to the SEC’s claim, others state that she erred in her ruling by distinguishing between XRP sales. 

As reported by Crypto Basic, US District Judge Jed Rakoff, presiding over the SEC v. Terraform Labs lawsuit, declined to follow Judge Torres’ reasoning. Judge Rakoff noted that the Howey test does not distinguish between buyers. 

His comments fueled speculations that the decision would not stand once it gets to appeal. Meanwhile, the SEC has been signaling plans to appeal Judge Torres’ decision. 

Deaton Speculates Court Will Issue Same Verdict 

However, Deaton is confident that Ripple will still emerge victorious against the SEC’s appeal. Per Deaton, even if the Second Circuit rules that Judge Torres erred in applying the Howey test’s third factor, the higher court will only remand the case. 

In this scenario, Deaton speculates that Judge Torres will apply the test’s second prong (common enterprise) to the different sales. 

Deaton asserted that the regulatory agency did not satisfy the second prong of Howey in the case. Thus, he speculated that Judge Torres would still issue a similar verdict. 

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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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