SEC vs. Ripple: Three Reasons Why Judge Torres Will Address XRP Secondary Market Sales

Attorney Deaton holds a strong conviction that in her forthcoming summary judgment decision, Judge Torres will delve into the matter of XRP secondary market trading.

As the SEC vs. Ripple lawsuit draws closer to its conclusion, legal experts focused on the cryptocurrency industry continue to analyze the potential outcome of the case. Amid this anticipation, attorney John Deaton, founder of CryptoLaw, took to Twitter to offer his speculation on Judge Analisa Torres’s future summary judgment decision and its potential impact on XRP secondary market trading.

Deaton’s remarks were prompted by a statement made by Marc Fagel, the former regional director of the SEC. Fagel had suggested that Judge Torres would likely not address the XRP secondary market trading issue. However, Deaton, representing thousands of XRP investors as amici curiae counsel in the Ripple lawsuit, disagreed with Fagel’s viewpoint.

According to Marc_Fagel, a former SEC San Francisco regional director, Judge Torres’ ruling in the SEC vs. Ripple is unlikely to address the issue of secondary market trading. Would you agree?

Deaton emphasized that the upcoming summary judgment decision remains uncertain, with no definitive knowledge of what Judge Torres will specifically address. While determining whether Ripple sold XRP as an investment contract does not necessitate a discussion of secondary market sales, Deaton pointed out that the judge could rule on more minor issues without delving into secondary market transactions.

Legal Expert Expects Judge Torres To Address Ripple Secondary Market Trading, Citing Three Key Reason

Expressing his confidence, Deaton stated that he believes Judge Torres will tackle the matter of XRP secondary market trading in her ruling. To support his stance, the pro-XRP lawyer outlined three key reasons behind his expectation.

Firstly, Deaton highlighted that the SEC’s summary judgment motion calls explicitly for the judge to address the secondary market trading of XRP. The commission argues that the purchase of XRP represents an investment in a joint enterprise between investors and Ripple, regardless of whether any country recognizes XRP as a legal tender. For the SEC, XRP serves as the link connecting all XRP investors to Ripple.

Furthermore, Deaton emphasized that the SEC’s argument extends beyond Ripple’s sales to encompass secondary market sales of the cryptocurrency. In his view, it would be surprising if Judge Torres avoided discussing XRP secondary sales and the token itself.

Secondly, Deaton believes that the numerous amicus briefs filed in the lawsuit, on behalf of XRP holders, Coinbase, SpendTheBits, TapJets, Blockchain Association, and Chamber of Digital Commerce, will prompt Judge Torres to address the issue of secondary market sales of XRP. Failure to do so would imply that the judge disregards the significance of these briefs.

Lastly, Deaton asserts that Judge Torres is aware of the discussions surrounding secondary market trading, as it was previously addressed during the penalty phase of the SEC vs. LBRY lawsuit. Deaton, who represented tech journalist Naomi Brockwell in the LBRY case, stated that if XRP secondary market sales are not addressed, and Ripple loses at summary judgment, he would file a motion to participate in the penalty phase of the Ripple lawsuit.

However, Deaton also acknowledged that the decision made by the judge overseeing the LBRY case does not necessarily indicate a similar outcome from Judge Torres. He pointed out that the SEC did not object to his participation as amicus curiae in the LBRY lawsuit simply because they were unaware of his request. Deaton sought the community’s input on whether the SEC would object to his involvement in the penalty stage of the Ripple lawsuit.

As the SEC vs. Ripple lawsuit nears its resolution, the anticipation surrounding Judge Analisa Torres’ summary judgment decision grows. Legal experts, such as attorney John Deaton, closely monitor the case, offering their insights on the possible outcome. With the future of XRP secondary market trading hanging in the balance, the crypto community eagerly awaits Judge Torres’ ruling, which will undoubtedly have far-reaching implications for the cryptocurrency industry.