Lawyer Deaton Predicts Judge Torres’ Rejection of SEC Appeal Request
Speculation and discussion surrounding the Ripple versus SEC lawsuit continues even after the fintech firm won a recently published summary judgment victory.
Recent tweets capture a correspondence between CryptoLaw founder John Deaton, attorney Bill Morgan, and former SEC regional director Marc Fagel about the possibility of appealing the case.
On a July 16 cheepDeaton speculated that U.S. District Judge Torres would not approve a request for an appeal from the SEC.
Deaton and others discuss whether Judge Torres would reject the SEC’s appeal
TO statement from an XRP enthusiast who claims that Deaton said that neither party could appeal the judge’s ruling until the court’s final ruling triggered a trade between the trio.
However, reacting to Deaton’s statement, Fagel said that while it is up to the court to approve an appeal, either party can request an immediate appeal.
In response to Fagel, Deaton clarified his statement, noting that he never implied that an appeal cannot be filed before a jury verdict. He added that while both parties have the right to appeal, it will not be immediate.
Furthermore, the prominent pro-XRP lawyer explained that either party could ask Judge Torres to approve their appeal request before asking the second circuit to accept it.
However, Deaton stressed that he does not believe Judge Torres will approve the SEC’s request.
Deaton believes the judge would throw it out because he based his decision on a strict application of the Howey factors in the SEC’s summary judgment request.
According to the attorney, Judge Torres applied Howey’s analysis to every XRP sale that the SEC said violated securities law.
“The court agreed that the Howey test was controlling and applied it accordingly. In essence, the judge applied a well-established 76-year-old Supreme Court test that is uncontroversial to the facts of the case.” deaton explained.
In that sense, Deaton concluded that either party can submit a written request to persuade the judge, but he sees no point in trying.
Will Ripple appeal Judge Torres’ decision? Fagel and Deaton exchange views
Furthermore, attorney Deaton said that he would be surprised if Ripple accepted an interlocutory appeal to counter-appeal the ODL sales. He expects the fintech company to respond to any motion to appeal Judge Torres’ decision.
In response, Fagel fixed that both sides would appeal Judge Torres’ ruling, adding that the SEC had a better chance of reversing the “programmatic selling” judgment.
He the exchange dragged onwith the participation of other XRP enthusiasts. Intervening in the discussion, Bill Morgan supported the opinion of Marc Fagel.
morgan saying he agreed with Fagel that both sides would appeal, noting that the only thing that would prevent it would be a settlement. However, the former SEC head speculated that there would not be a deal.
According to Fagel, the SEC will not accept a settlement because it will not remove the ruling from the books. Furthermore, Judge Torres’ decision significantly affects the SEC’s cases against cryptocurrency exchanges in other courts.