In the ongoing legal dispute between Ripple and the US SEC, attorney John E. Deaton has provided insight into the possible effects of the recent filing.
As mentioned in the news today, the blockchain payments company has submitted a second letter of notice of additional authority supporting its fair notice defense.
The filing, made public by lawyer James K. Filan, who has closely watched the case, in a tweet yesterday, refers to a recent decision in the Voyager bankruptcy case.
Judge Michael E. Wiles’ decision overturned the SEC’s challenge to Binance.US’s acquisition of Voyager’s assets due to continued agency rumors that VGX might be an unregistered security offering and Binance.US might be an unregistered security exchange.
In reaching this conclusion, the judge criticized the SEC for failing to develop a methodology to determine which cryptocurrencies qualify as unregistered security offers and for fostering ambiguity in the market’s infancy.
Deaton’s Comment on Recent Ripple filling
In a thread on Twitter yesterday, Deaton commented on the filing and claimed that Judge Analisa Torres could make reference to a recent decision made by her colleague in the Southern District of New York (SDNY) to criticize the SEC’s actions and what she perceived to be its inconsistent treatment of digital assets.
Remember how the founder of CryptoLaw claimed a few days prior, citing the same judgment, that judges would be compelled to criticize the commission for what was seen as a lack of loyalty to the law, overreach, and contradictory remarks.
Additionally, the lawyer claims that it is now less probable that the judge will side with the SEC in its accusations against Ripple officials.
Remember that in its complaint, the regulator had named and charged Brad Garlinghouse and Chris Larsen with encouraging the sale of unregistered securities.
Deaton had characterized this action as a mistake on the part of the market regulator, as was previously reported.
Deaton claims that it is improbable that Judge Torres would convict the executives if the SEC were unaware that XRP was an unregistered security, citing the most recent filing.
The XRP community still awaits Judge Torres’ decision on summary judgment petitions over the two-year-old legal dispute.
Deaton claimed it would be the only source of certainty for the developing market in the following two years.
Experts predict the decision will be made before the end of April.