Pro-XRP Lawyer Willing to Bet Big on Ripple v. SEC Case Appeal

Pro-XRP lawyer John Deaton has said he’s willing to wager on the outcome of the U.S. Securities and Exchange Commission’s appeal against a recent ruling that determined Ripple’s XRP token is not a security under certain circumstances.

• Deaton, the founder, and host of CryptoLaw, remarked in a post on X (formerly Twitter) while supporting the view of fellow lawyer and crypto enthusiast Bill Morgan, who claimed the judge in the SEC vs XRP case had not erred in her decision.

Excellent 🧵 explaining that Torres didn’t make a distinction between the different sales out of thin air. She took each type of sale CHOSEN and DEFINED by the SEC and applied the Howey test. I’m willing to bet significant funds she doesn’t get reversed on appeal.

— John E Deaton (@JohnEDeaton1) August 6, 2023

• According to Deaton, Judge Analisa Torres, who presided over the XRP case, applied the Howey Test on each SEC charge against Ripple before delivering her verdict. For that reason, Deaton is willing to bet “significant funds” against the SEC, getting a reversal of the judgment if it appeals.
• Deaton’s confidence is in stark contrast to other members of the crypto community who may have been rattled by the decision of another judge presiding over a case the SEC has brought against Terraform Labs and its founder, Do Kwon.
• Terraform and Do Kwon had tried to use the findings in the XRP case to get charges against them dropped. However, Judge Jed Rakoff faulted Judge Torres’ reasoning, stating that the Howey Test does not distinguish between buyers.
• Rakoff’s comment led many in the crypto space to speculate that Judge Torres’ decision may get squashed on appeal, which the SEC has signaled it plans to file.