Ripple Vs SEC: Can Judge Avoid Ruling on XRP Secondary Sales? Lawyer Provides Clarity

The post Ripple Vs SEC: Can Judge Avoid Ruling on XRP Secondary Sales? Lawyer Provides Clarity appeared first on Coinpedia Fintech News

The Ripple vs. SEC lawsuit has entered its final phase, and the final ruling could be announced soon. The focus of the entire industry is on the issue of XRP secondary sales, which holds significant importance in this case.

The SEC has accused Ripple of offering XRP as an unregistered security, implying that XRP itself should be considered a security. This accusation has implications for the sales of XRP on the secondary market. The regulatory agency has not clearly distinguished between Ripple’s direct sales of XRP and the subsequent trading of XRP on the secondary market.

However, the attorney representing XRP holders suggests that there is a possibility that the lawsuit may not address the issue of XRP’s secondary sales.

Attorney John Deaton’s Perspective on the Scope of Ruling in the XRP Lawsuit

Attorney John Deaton, who is involved in the XRP lawsuit as an Amicus Curiae, holds a different viewpoint from other lawyers regarding the potential ruling by District Judge Analisa Torres. While some lawyers believe that the judge may not address the nature of XRP or the issue of secondary sales in her decision, Deaton disagrees.

Deaton asserts that in order to address the secondary sales issue, Judge Torres must first dismiss the SEC’s theory surrounding XRP. The Securities and Exchange Commission (SEC) has accused Ripple of conducting a continuous operation that resembles a 24/7 initial coin offering (ICO) spanning a decade. The SEC considers every sale of XRP as securities, regardless of the seller or the circumstances surrounding the sale.

Drawing a parallel to the Telegram Case, Deaton argues that the district court judge should tackle both the nature of XRP and the secondary sales issue, similar to the approach taken by Judge Castel in that case. In the Telegram Case, Judge Castel delivered two separate opinions and orders.

Attorney Deaton Predicts Final Ruling Dates 

During a live stream, Attorney John Deaton mentioned that he had previously attempted to predict the verdict date by analyzing Judge Torres’ past rulings. Based on his findings, the lawyer noted that once the Daubert/expert motions were resolved, Judge Torres issued rulings at different speeds. 

Sometimes it was on the same day, while in other cases it took two, four, or six months. Since those deadlines have already passed, the lawyer now predicts that Judge Torres will deliver a summary judgment on September 6th of this year, after the full six-month period.