Pro-XRP Lawyer Deaton Explains Whether SEC Can Appeal Immediately
According to attorney John Deaton, the U.S. Securities and Exchange Commission (SEC) can appeal against Ripple immediately, but there will be no immediate appeal. Deaton’s statement came after the SEC dropped charges against Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen. The trial scheduled for April 2024 will not take place due to the dismissal of these charges. However, Deaton explained that the penalty phase of the case must finish first before a possible appeal by the SEC can occur.
Citing LBRY Lawsuit as an Example
Deaton referred to the LBRY lawsuit as an example to support his argument. He highlighted that in the LBRY case, an appeal became possible only after 8 months of the summary judgment decision. The SEC reduced fines from $23 million to $130K in that case. Deaton believes that Ripple will argue for exemptions for ODL transactions and legitimate business costs in their lawsuit against the SEC, where the SEC seeks $770 million.
No Immediate Appeal by the SEC Likely
While an immediate appeal by the SEC is not likely to happen, Deaton mentioned that dismissing the case against Ripple executives was due to the failure of proving aided and abetted charges against them. Deaton also expressed curiosity about the witness list of subpoenas for certain individuals to testify in this case.
Will Ripple Settle on Institutional Sales of XRP?
Since the trial on the SEC claim against Ripple executives is now invalid, Ripple’s attorney has sent a letter to Judge Torres requesting a briefing schedule on pending issues after November 9. Ripple is seeking remedies for violations of Section 5 of security laws concerning its institutional sales of XRP. The possibility of a settlement seems higher now, but Ripple will challenge the SEC’s authority to regulate the crypto industry.
Hot Take: Pro-XRP Attorney Deaton Believes There Will Be No Immediate Appeal by the SEC
According to Pro-XRP attorney John Deaton, although the SEC can appeal against Ripple immediately, there will be no immediate appeal. Deaton explains that the penalty phase of the case must conclude first before a possible appeal can occur. He cites the LBRY lawsuit as an example, where an appeal became possible only after 8 months of the summary judgment decision. Deaton also believes that Ripple will argue for exemptions for certain transactions and legitimate business costs in their lawsuit against the SEC. Overall, Deaton’s insights suggest that an immediate appeal by the SEC is unlikely in this case.
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