Ripple vs SEC: Is the High-Stakes Legal Battle Headed for the Supreme Court?

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Well-known attorney and CryptoLaw founder, John Deaton, recently shared intriguing insights on the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC). In his latest CryptoLaw broadcast, Deaton delved into the possible trajectory of the case, suggesting that it could ultimately land in the US Supreme Court.

How did the situation take such a drastic turn? Let’s explore.

Ripple to Battle Unfavourable Rulings

Deaton highlighted that if Judge Analisa Torres were to grant a summary judgment in favor of the SEC, Ripple would not take this lying down.

She [Judge Torres] knows Ripple is appealing if she rules in favour of the SEC […] Let’s face it, this case will go to the U.S Supreme Court most likely if it goes up on appeal

Ripple’s Long-term Legal Strategy

Deaton pointed out an intriguing aspect of Ripple’s legal approach. He noted that Ripple’s summary judgment brief appeared to be designed with the Appellate Courts in mind, indicating their focus on a long-term legal strategy.

Also Read – Top Crypto Lawyer Reveals New Verdict Date for Ripple-SEC Case

Additionally, he mentioned the possibility of the SEC engaging in negotiations with Ripple to discourage any potential appeal.

A New Ripple Test on the Horizon

Deaton suggested that the Ripple lawsuit could lead to the development of a new securities test, aptly named the “Ripple test.” This test could complement the existing Howey test, which currently determines the classification of a transaction as an investment contract.

While the SEC could theoretically file a “notice of appeal” once Judge Torres delivers her summary judgment decision, Deaton speculated that they might opt for negotiations with Ripple to avoid the appeals process altogether.

Why the Delay in Judgement?

Deaton proposed that one reason for Judge Torres’s delay in issuing a ruling could be the potential for the case to reach the Supreme Court. Given that her decision would undergo thorough examination by top US justices and the Second Circuit, she is likely taking her time to ensure a comprehensive and robust ruling.

Related: Did Ethereum Purchase a Free Pass From Hinman? Ripple-SEC Lawsuit Takes a Shocking Twist

Ripple’s General Counsel, Stuart Alderoty, echoed Deaton’s insights. Alderoty confirmed that if Judge Torres grants a summary judgment in favor of the SEC, Ripple will swiftly file an appeal. He expressed unwavering confidence in Ripple’s ability to succeed against the SEC at the Supreme Court, emphasizing the court’s tendency to safeguard against the expansion of an administrative state.