• John Deaton, founder of CryptoLaw and a pro-XRP lawyer, believes that the SEC will lose its case against Ripple.
• Examples given by Deaton includes cases against LBRY, Grayscale and Voyager where judges dismissed the SEC’s arguments as lacking clarity or making no sense.
• Gary Gensler’s recent testimony before the House Finance Committee implied that the SEC might find grounds for a crackdown on cryptocurrencies in various circumstances.
SEC vs Ripple: A Battle of Legal Clarity
Crypto Lawyer John Deaton recently expressed his belief that the United States Securities and Exchange Commission (SEC) would lose its case against Ripple after Judge dismisses its arguments. This opinion was based on four instances where different judges found the SEC’s arguments to be meritless.
Examples of Meritless Arguments
John Deaton gave examples such as cases against LBRY, Grayscale, and Voyager where judges dismissed the regulator’s arguments as lacking clarity or making no sense, and even reprimanded the SEC’s ethics and behavior. He claimed that in the Ripple lawsuit, Judge shamed the SEC for not having a faithful allegiance to law.
Gary Gensler’s Viewpoints
Gary Gensler, head of U.S. Securities and Exchange Commission recently testified before House Finance Committee revealing his understanding of regulatory duty which implies that SEC might find grounds for a crackdown on cryptocurrencies in various circumstances including Twitter appearances, software updates or legal teams which Gensler and SEC might consider sufficient for suspecting crypto asset as securities requiring registration.
Challenges with Howey Test
Deaton further pointed out that Gensler seems content with using Howey Test an outdated method from first half of 20th century to try prove all cryptos except Bitcoin must be illegal without approval from SEC . He also criticized stance taken by SEC stating crypto projects must seek contact but ultimately do not receive resilient legal information .
John Deaton’s statement implies that current regulations from regulators like U.S Securities & Exchange Commission are inadequate when it comes to legal clarity needed by new technologies like cryptocurrency industry which is why he strongly believe that Ripple will win this battle with US Federal Court system .