Possible intro: According to attorney John E. Deaton, who represents over 11,000 XRP holders in the ongoing SEC v. Ripple lawsuit, Judge Analisa Torres’ recent decision to deny the defendant’s motion to dismiss increases the risk of a negative outcome for Ripple. In a new blog post, titled “BAD NEWS,” Deaton explains why he thinks Judge Torres’ ruling casts a shadow over Ripple’s defense strategy and exposes even more the company’s vulnerability to a regulatory crackdown. In this article, we’ll summarize Deaton’s analysis and offer some context on the SEC v. Ripple case, which could have significant implications for the future of cryptocurrencies and the regulatory landscape in the United States.
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Attorney Deaton: “BAD NEWS” For Ripple May Result FROM JUDGE TORRES RULING
The ongoing lawsuit between Ripple Labs and the United States Securities and Exchange Commission (SEC) has been a topic of discussion in the crypto world for a while now. The recent ruling by Judge Sarah Netburn has sparked new concerns, with attorney John Deaton commenting on the potential bad news for Ripple’s case.
The Judge Torres Ruling and Ripple’s Future
On May 30, 2021, Judge Netburn granted a motion by the SEC to compel Ripple to produce documents concerning its XRP sales to third parties. The SEC alleges that Ripple sold unregistered securities in the form of XRP, and the document production is aimed at proving the SEC’s case.
An attorney who filed a motion to intervene in the case on behalf of XRP holders, John Deaton, commented on the latest ruling’s implications for Ripple. According to Deaton, Judge Netburn’s ruling could have severe consequences for Ripple’s chances of winning the lawsuit. The ruling may result in information about Ripple’s XRP sales to be made public, which could potentially damage the company’s reputation.
Ripple’s Payment to Third Parties
Ripple’s payment to third parties to list XRP is a central issue in the parties’ summary judgment. The court has previously granted the SEC’s motion to compel Ripple to produce information related to its XRP sales to on-demand liquidity (ODL) clients and the exchanges with which it has listings and may have paid to list XRP.
The SEC has accused Ripple of engaging in “pay-to-play” practices when it paid an exchange to list XRP and secure a wider consumer market for its cryptocurrency. The alleged misconduct, according to the SEC, has influenced XRP’s trading value, and Ripple should have registered XRP with the SEC.
The Ripple XRP Price Movement
The XRP price movement has been volatile in recent months. The price rocketed after the judge denied the SEC’s motion to seal the draft of William Hinman’s controversial speech in 2018, which defined Bitcoin and Ethereum as not being securities. The judge’s decision made traders optimistic about Ripple’s chances of winning the lawsuit against the SEC.
However, the price dropped after the SEC asked Grayscale to withdraw its application to make trust reporting headlines. The move was seen as a continuation of the SEC’s crackdown on unregistered securities, further raising concerns about the SEC’s actions harming people’s net worth.
What was the Judge Torres ruling?
The Judge Torres ruling was a motion to compel Ripple to produce documents related to its XRP sales to third parties.
How does the Judge Torres ruling affect Ripple’s case against the SEC?
The ruling may potentially result in information about Ripple’s XRP sales to be made public and damage the company’s reputation.
What is the central issue in the parties’ summary judgment?
The central issue is Ripple’s payment to third parties to list XRP, which the SEC alleges has influenced XRP’s trading value.
How has the XRP price movement been affected by the lawsuit?
The XRP price movement has been volatile, with traders optimistic after the judge denied the SEC’s motion to seal the draft of William Hinman’s controversial speech. However, the SEC’s actions have raised concerns about people’s net worth and caused the XRP price to drop.
What has attorney John Deaton said about the case against the SEC?
Attorney John Deaton has promised to comment on the remarket spaces regarding the case against the SEC.