More crackdowns can be expected if US SEC beats Ripple in its ongoing lawsuit
Pro-crypto lawyer John Deaton has provided an insight into what can happen if the regulator wins, despite his firm belief that Ripple would prevail in its action against the SEC.
According to a tweet from Fox Business correspondent Eleanor Terrett, who provided details regarding the closure of Signature Bank, Deaton tweeted in response to the unjust attempt by regulators to send a message against cryptocurrency.
He asserts that if the court overseeing the Ripple-SEC case concurs with the regulator’s assertions that all transactions using XRP, including those conducted on the secondary market, constitute securities, the regulator will be powerless to resist calls for a crackdown.
As each day passes, Judge Torres’ decision in the @Ripple case becomes more significant. If she wholeheartedly adopts the @SECGov’s theory that all transactions of #XRP including #XRP traded in the secondary market are securities, it will provide Gensler both cover and momentum. https://t.co/ojuZxcK26e
— John E Deaton (@JohnEDeaton1) March 13, 2023
According to Deaton, a decision in this manner would provide SEC Chairman Gary Gensler the justification and impetus he needs to file similar lawsuits against businesses engaged in the Web 3.0 industry.
Deaton has been at the forefront of reviving optimism that the Ripple-SEC litigation will result in the former’s favor, given the significance of the decision. In a recent ruling based on the opinion of expert witnesses, the cryptocurrency payments company was awarded a stronger lean than Ripple.
In addition to Deaton, as AZCoin News reported, experienced attorney Scott Chamberlain has predicted that the payments corporation will probably prevail in court. Given that a large portion of XRP transactions took place on offshore exchanges, where the SEC lacks jurisdiction, Scott contended that the majority of the premises upon which the SEC’s claims are based are inadmissible.
- Ripple Shoveled Over 900 Million XRP In Three Massive Chunks After Signature Bank Shut Down
- Traditional Investors Show Abnormal Interest In XRP Despite Outflows Totaling Hundreds Of Millions Of Dollars
- Judge Analisa Torres In Ripple Lawsuit May Have Already Decided Whether XRP Is A Security