SEC to Lose to Ripple After Judge Dismisses Its Arguments: Crypto Lawyer



• Crypto lawyer John Deaton believes that the SEC will lose its case against Ripple after a judge dismissed its arguments.
• Deaton cites examples of SEC cases against LBRY, Grayscale, and Voyager where judges found their arguments meritless.
• The SEC chair’s approach has sparked concern among crypto experts, who fear the SEC may start cracking down on US-based cryptocurrency exchanges.

John Deaton’s View on the Case

John Deaton, founder of CryptoLaw and a pro-XRP lawyer, recently expressed his belief that the United States Securities and Exchange Commission (SEC) would lose its case against Ripple. Deaton’s statement came as a response to a tweet by former SEC enforcement official John Reed Stark, who highlighted that the SEC had started a crackdown on US-based cryptocurrency exchanges.
Deaton supported his assertion by mentioning four instances where different judges found the SEC’s arguments to be meritless. He claimed that in the Ripple lawsuit, the judge shamed the SEC for not having a faithful allegiance to the law. The legal expert also mentioned SEC cases against LBRY, Grayscale, and Voyager, where judges dismissed the regulator’s arguments as lacking clarity or making no sense, and even reprimanded the SEC’s ethics and behavior.

SEC Chair Gary Gensler’s Approach

Gary Gensler, the head of the U.S. Securities and Exchange Commission, recently testified before the House Finance Committee, revealing his understanding of regulatory duty. According to Deaton, Gensler’s views imply that the SEC might find grounds for a crackdown on cryptocurrencies in various circumstances. This could include situations involving Twitter appearances, software updates, or legal teams which Gensler and/ortheSEC might consider sufficient for suspecting a crypto asset as securities requiring registration.

Challenges with Legal Clarity

Deaton further pointed out that Gensler seems content with using an outdated method from early 20th century called Howey Test in order to prove all cryptos–apart from Bitcoin–must be illegal without approval from SEC .The lawyer also criticized about stance taken bySECthatcrypto projects must seek contact with authority but ultimately do not receive resilient legal information .


Crypto Lawyer John Deaton is confident that based on recent evidence ,theSecuritiesandExchangeCommissionwillloseitscaseagainstRippleafterjudgedismisseditsargumentsaswellasreprimandingtheSECsetheicsandbehaviorinvariouscasesbeforethisoneagainstatLBRYGrayscaleandVoyagerwhichwerealldismissedbydifferentjudgesforlackingclarityormakingsensenorboth .