Attorney Deaton predicts rejection of SEC appeal request by Judge Torres.

Attorney Deaton predicts rejection of SEC appeal request by Judge Torres.

The Ripple vs. SEC Lawsuit: Speculations and Discussions Continue

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The Ripple vs. SEC lawsuit has been the center of attention in the blockchain industry recently. After securing a victory in the recently-released summary judgment, Ripple has caused speculations and discussions about the future of the case. Let’s dive deeper into the details and explore the various viewpoints surrounding this legal battle.

Ripple’s Victory and the Possibility of an Appeal

Recently, CryptoLaw founder John Deaton, Attorney Bill Morgan, and former SEC regional director Marc Fagel engaged in a Twitter conversation regarding the possibility of an appeal in the case. Deaton speculated in a tweet that US District Judge Torres would not approve an appeal request from the SEC. This statement triggered an exchange between the trio, with Fagel stating that either party can seek an immediate appeal, regardless of the court’s approval.

Deaton clarified his initial statement, emphasizing that he never implied an appeal couldn’t be filed before a jury verdict. While both parties have the right to appeal, it won’t be immediate. He explained that either party could ask Judge Torres to approve their appeal request before submitting it to the second circuit. However, Deaton expressed his belief that Judge Torres would decline the SEC’s appeal request.

Judge Torres’ Ruling and the Howey Factors

Deaton believes that Judge Torres would decline the appeal because her ruling was based on a strict application of the Howey factors, as per the SEC’s summary judgment request. The Howey test is a well-established Supreme Court test that has been used for over 76 years to determine whether a transaction qualifies as a security. According to Deaton, Judge Torres applied the Howey analysis to each XRP sale that the SEC alleged violated securities law.

In essence, the judge’s decision hinged on the application of this test to the specific facts of the case. Deaton concluded that while either party could submit a written application to persuade the judge, he sees no point in trying to appeal based on the judge’s ruling.

Ripple’s Stance and the Views of Fagel and Morgan

Attorney Deaton expressed his surprise if Ripple agreed to an interlocutory appeal to cross-appeal on the ODL (On-Demand Liquidity) sales. He expects Ripple to counter any motion to appeal Judge Torres’ decision. On the other hand, Fagel stated that both sides would appeal Judge Torres’ ruling, suggesting that the SEC had a better chance of reversing the judgment on the “programmatic sales.”

The discussion continued, with other XRP enthusiasts chiming in. Bill Morgan supported Marc Fagel’s opinion, agreeing that both sides would appeal. He mentioned that the only factor that could prevent an appeal would be a settlement, but he speculated that a settlement was unlikely.

Fagel also pointed out that the SEC would not accept a settlement because it would not remove Judge Torres’ decision from the books. Moreover, Judge Torres’ ruling significantly affects the SEC’s cases against crypto exchanges in other courts.


As the Ripple vs. SEC lawsuit unfolds, the industry eagerly awaits further developments. The discussions surrounding the possibility of an appeal and the implications of Judge Torres’ ruling provide valuable insights into the future of this legal battle. The outcome of this case will undoubtedly shape the regulatory landscape for cryptocurrencies and influence the way blockchain companies operate in the United States and beyond.

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