Attorney Deaton is confident that the Second Circuit will not overturn Judge Torres’ ruling in the Ripple lawsuit.
US District Judge Analisa Torres’ decision in the SEC v. Ripple lawsuit has been a major topic of discussion. Recall that she ruled that the company’s institutional past sales constitute investment contracts and found that programmatic sales on digital exchanges are not securities.
As expected, several legal experts have slammed her decision in the case, including US District Judge Jed Rakoff, who rejected Judge Torres’ distinction of Ripple’s sales.
Consequently, growing speculation is that the Second Circuit will reverse Judge Torres’ decision.
Judge Torres’ Ruling Won’t Be Reversed
Reacting, Crypto-Law founder John Deaton expressed confidence that the Second Circuit will not reverse Judge Torres’ summary judgment decision.
“I am extremely confident that her decision is untouchable on appeal,” said Deaton.
Attorney Deaton remarked a recent Twitter Spaces hosted by Uphold cryptocurrency exchange. According to Deaton, Judge Torres has never had her summary judgment reversed on appeal.
— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 8, 2023
Attorney Deaton added that Judge Rakoff, who criticized Judge Torres’ reasoning in the Ripple lawsuit, has been reversed 56 times by a higher court.
Why Ripple Victory Won’t Be Reversed
Furthermore, Deaton explained that the SEC was responsible for distinguishing XRP sales into three categories- institutional, programmatic, and other distribution.
Since the SEC alleged that these sales were investment contracts, the judge strictly applied the Howey test to them.
“The Howey test says ‘it is immaterial’ whether the underlying asset is speculative or has intrinsic value. Are these [Howey] factors satisfied? She went and applied them to each one [XRP sales] and found what she did,” said Deaton.
Deaton Is Willing to Bet
Interestingly, Attorney Deaton reiterated that he is willing to place a massive bet that the Second Circuit will not touch her decision on appeal.
“I’m willing to put a huge bet that her opinion does not get touched on appeal because all she did was apply that law to those different types of sales, and the results are the results,” he added.
Attorney Hogan Reacts
Meanwhile, top members of the XRP community took to X, formerly Twitter, to react to Deaton’s latest remark. Pro-XRP lawyer Jeremy Hogan joined other XRP enthusiasts in reacting to Deaton’s comment, saying “it is almost unheard of” that Judge Torres has not been reversed on appeal.
“That’s like getting straight A’s from elementary through post-grad. Like, not even an A- in calculus,” he added.