Attorney Deaton: Ruling in SEC v. Ripple Lawsuit “COULD BE TONIGHT”

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Hello this is Matt on the moon family Said Dan Channel and here's a headline From the crypto basic which I think will Catch the attention to pretty much any Xrp holder within our community the Headline is Deaton says ruling in secv Ripple lawsuit could come tonight now It's worth noting that when he said that It was last night at the time I'm Recording this what the hell day is it It's Tuesday isn't it yeah it's Tuesday Um and that time of recording this case Anyone's curious It's 4 49 a.m so uh he Said tonight but obviously it's not Morning so that didn't happen but why Did he why did he state that well there Was a major development yesterday I'm Sure many of you are aware at this point If not I encourage you to check out my Very last video was almost 40 minutes Long but we got a ruling from Judge Torres yesterday not regarding summary Judgment but the ruling having to do With uh experts either you know their Their testimony either being rejected or Accepted effectively and it was very Positive for uh for ripple the net plus For for ripple SEC got some things that They wanted but it was a much bigger win For for ripple and thus xrp holders I'd Certainly are again I don't want to Rehash that since I did a pretty intense Breakdown already but if you're Wondering what caused John Deaton to

State that it's that ruling because you Know it look John has said yeah of Course it's possible that we could see a You know a ruling on summary judgment From Judge Torres in March but he's also Warned that you know it could be April Or May but um the fact that we have Already seen that particular ruling come Out literally yesterday March 6th that Is what triggered him to State um really It's effectively not not to put words as Well I'll show you exactly what he said But effectively I think the messages Conveying is it could imminently come Out Um and also I want to talk to you since That's the case I want to talk to you a Little bit about what we can expect Moving forward because frankly there's a Very real possibility that Um you know when we get this ruling even If it's positive for ripple and positive For xrp holders there's a real Possibility that the Saga does not end There you know there's an article I want To share with you from somebody who Hasn't uh was on a until last year an SEC advisory committee working directly With Gary ginsler mind you and he's not Fond of Gary ginzer and he's warning Frankly this is going to have to Probably go to at least the Appellate Level so there's virtual certainty There's certainly there's going to be an

Appeal and it's also quite possible this Goes all the way to the Supreme Court Now what's that mean for xrp holders in The meantime Well it depends on how things shake out So let's talk about it but before going Further I need to be clear I do not have A legal or financial background of any Kind I'm not offering legal or financial Advice and you definitely should not buy Or sell anything because of anything I Say right I'm just an Enthusiast who Enjoys making YouTube videos about Crypto related topics but just as a Hobby and just forefoot all right so one Of the first piece here Deaton says he Does not expect to judge Torres to Significantly delay in giving her ruling On summary judgment motions Attorney John Deaton has opined that the ruling In the United States Securities and Exchange Commission case against Ripple Is imminent the crypto law founder who Represents thousands of xrp holders as a Friend of the case made this known in a Tweet today in response to inquiries About whether the release of the judge's Decision on dalbert motions gives any Hints on the timeline for her summary Judgment decision Deaton Express doubts That there would be significant delays The lawyer noted that the judge could Release her ruling as early as tonight Or in a few weeks yeah an apostle he's

He's not the only I can see exactly why I was thinking this there's all sorts of Attorneys that were speculating that This indeed might be the case I'm going To share with you here with you another Opinion from another attorney within our Community and he ends up highlighting Something that was stated by attorney Philand another another member of the Xrp community who noteds you know that There's a real good possibility that These could be either issued at the same Time both ruins in terms of the role Having to do with the experts as well as Summary judgment or they could be Roughly back to back which is why we're At a point here where I'm going to be Constantly checking you know crypto Media and social media for updates Because we really are at this phase Where any day now it really is possible And perhaps probable that we're gonna See uh the judge's decision it's going To be out very very very soon and this This is just making everyone think that It's it's more likely than not like Literally that imminent before that it Was a little less certain but it seems Highly probable that yeah this is the Direction we're going and Attorney John Deaton is is convinced of that as well And so here's the actual tweet Um and he was asked by an expert Community member you know uh any any

Hint here as a result of this ruling Coming out yesterday any hint kind of Remaining until uh you know the timing For the summary judgment that that uh That ruling to come out and attorney Deaton wrote I seriously doubt that we See a significant Delay from here could Be tonight or in a couple weeks and so Look we don't know but the fact that This happened again like I just said a Minute ago it leads one to believe that Perhaps this could occur imminently and Attorney Fred raspoli member of the xrp Community uh said the following he said Because he was asked You know as far as the timing what Exactly are we looking at here and he Said uh I would say this month James Phylen suggested we'd see a likely Simultaneous ruling on experts in Summary judgment and that made a lot of Sense so summary judgment is either Coming out at any moment or judge Torres Is dropping this one first to to cajole The parties into settlement at the last Chance now that's an interesting Theory Um and you know I buy it I buy this I'm Not saying that I believe with some high Level certain that's going to happen but I can buy the concept it's plausible Because if if you are aware of what Happened and if you're not again check Out my very last video if you're aware Of what happened and the degree to which

This is beneficial for Ripple uh it Might send the SEC a signal a message Here that uh You know this this might not go so well For you and there are a lot of reasons For that I mean some some of the Strongest arguments the SEC who's making Were out like outright rejected by the Judge they can't even make the arguments In the case so it's plausible at least To note that perhaps it's the strategy Of Judge Torres to just you know get the Get the parties talking again see if They can finally reach settlements now I'm not optimistic that's going to Happen but plausible theory for sure and Then there was this article shared by John Deaton's crypto law organization And this is where we got to talk a Little bit about what can we expect Um moving forward Because you know the idea of this case Concluding you know when we will see What the judge's ruling is but the idea Of the ruling coming out and then both Parties like okay yeah I guess that's Over the idea of that happening perhaps Slim the idea that somebody's going to Appeal whoever loses a good appeal Well perhaps very high probability and So um this is JW vet who wrote the Article I'm going to share with you a Couple key portions of it uh he's the Guy on your screen here and I've covered

Some stuff from them on my channel Before he seems like a very intelligent Very sharp guy uh he was on the SEC Advisory committee until he um is Terminated and this is you know as of About a year ago so he on on March 15th Of last year he wrote The Following upon My term ending on the sec's advisory Committee last week I took the chance to Give chair ginsler some strong words About his abuse of digital assets and he Told him straight to his face and I Remember covering that in a video at the Time and now he's got some additional Perspective here and a brand new article Which was published literally yesterday The timing of this is just perfect given That we're at this point where the judge Already issued this ruling having to do With the expert Witnesses and now we're Looking at okay what's going to happen Once the ruling comes out which does Seem to probably be imminent and so this Article is titled crypto is a major Question only appellate courts can Answer and so I printed this thing up And there are a couple key portions I Want to highlight not literally the Whole thing but I think you're going to Find this interesting because you got to Be wondering given that we are at this Phase where like this really we're Really at the finish line here what Happens next because someone's gonna win

Someone's going to lose right and I mean There could be a little splitting of the Baby so to speak as we've been talking But even so Um it's I don't know that it's likely to End after this rule is the point but Anyway a piece reads his files uh crypto Enthusiasts and securities lawyers alike Are awaiting the resolution of the U.S Securities and Exchange commission's Case against Ripple Labs Inc and its Founders over their distribution of the Cryptocurrency xrp the SEC alleges that There was an unregistered sale of Securities when xrp was first Distributed as well as unregistered Subsequent distributions under former SEC chair Jay Clayton the ethereum Network was appropriately blessed in Guidance from the sec's division of Corporation Finance director as not Meeting the Howie test for what is Considered a security but the Distribution of xrp instead was met with A midnight enforcement action approved In Clayton's last days in the role the Deck is usually stacked against Defendants in cases of this type as Existing interpretations of what must Register with the SEC are fairly Flexible But Ripple has argued strenuously that There are limits to that flexibility When it comes to this new asset class

Yet no matter how secv Ripple Labs Inc Is resolved at the U.S District Court For the southern district of New York Conventional wisdom is that the losing Side will appeal When it does this case may become the Vehicle by which administrative law Itself is transformed by the U.S court Of appeals for the second circuit and The U.S Supreme Court so let's pause a Note here if if Ripple has an outright Win I think that it's highly likely the SEC is is going to appeal now if um Let's say let's say that the SEC gets a Technical win they get a technical win Against Ripple and maybe maybe it's even Just for some specific sales but the Judge indicates that you know sales Moving forward obviously the wooden Account as unregistered Securities for Reasons a b c XYZ whatever she ends up Issuing so it's again just hypotheticals Here Well if that happens and there's a path Forward for xrp and the the SEC got a Technical win and as a result the Ripple Has to pay a fine of x amount of dollars Well if that happens when you get to the Remedies portion of this case uh at that Point there there could be a demand from The SEC that's uh the the you know maybe Ripple accept this Um you know we'll go ahead and agree to Specific remedies when it comes to this

Case now that we we have one where the SEC uh but you have to agree to not Appeal not appeal the decision of the Judge Now if under that scenario as long I Think as long as Ripple has you know a Path forward to continue to do as xrp in Their business model and there's a path Forward legal Clarity for xrp I think They take that deal if that even if Ripple loses I don't think they appeal If if part of the package is is a Conclusion where there's a path forward For xrp I don't think they're going to Give a damn why would they continue the Fight why would they do that I don't Think they would so that's why again if Ripple gets an outright win this thing Could drag on if the SEC that's why it's So funny to think if the SEC gets in our SEC gets a win Um but there's a path forward for xrp it Could actually end right there So that's I just I could not be more Curious as to know what judge Torres is Leaning towards we kind of got some Hints yesterday and I think it's Probably good for xrp holders at least I Don't know for sure if it's good for Ripple but for extra peel there's my Suspicion is yes But anyway uh peace continue the SEC has Recently brought a series of cases Against other cryptocurrency operators

Including stable coins and staking Services with more expected imminently Meanwhile the commission has proposed Rules to require decentralized Finance Protocols in crypto which are Essentially just computer code written Onto a blockchain like ethereum to Autonomously settle Financial Transactions to register as licensed Exchanges which is impossible exactly How are you going to get some sort of Decentralized system like that to License it when he says it's impossible It is literally impossible to do You cannot Even if you could magically get all the Participants in the system to try and Fill out paper even if you got to that Point which you can't but even if you Could you CA you can't fill the Paperwork out like who's in charge no One's in charge exactly well not Literally no one but it's it's a diverse Group of individuals no of course not so It's just it's funny and stupid but Peace continue the Supreme Court has Long held that when federal agencies Seek to determine a matter of national Significance they must do so using clear Authorization from Congress this has Been described as the major questions Doctrine by lower appellate courts in Essence for a federal agency to regulate A major question the statute must

Clearly state that the agency shall Regulate this issue And that's a key concept there as we go Through this so again if if you're a Government agency And you're doing something big which Obviously the SEC is here if it's not Crystal clear that you have been granted Such Power by Congress uh you're gonna Have a problem that's the concept it's The major questions doctor anyway peace Continues the phrase major questions Doctrine was used for the first time by The Supreme Court in 2000 to 22 in West Virginia the U.S Environmental Protection Agency a landmark opinion That overturned one of the epa's Signature rules from the Obama Administration The major question in the case was Whether the agency had the authority to Regulate greenhouse gas emissions from Power plants under the Clean Air Act Specifically The EPA had issued a rule known as the Clean power plan that set carbon dioxide Emissions limits on power plants and Required states to develop plans to meet Them but there was no clear Authority in The act for the EPA to do so The agency tried to thread together a Number of vague statutory references to Justify a congressional grant of Authority but the Supreme Court was not

Convinced and so I'll pause to note this Concept right here is why Attorney John Deaton has previously articulated that He believes if the secv Ripple case Makes it to the Supreme Court first of All the Supreme Court doesn't have to Accept the case but let's be real they For something like this especially when You're talking about government overage Oh they would and attorney Deaton has Articulated that with the current makeup Of the Supreme Court of the United States it's composed by a lot of people Not exclusively but by a lot of people Who detest government overreach and I'm Talking about from if there's a Government agency as just just describe This example here at the EPA Overstepping you know pretending like They have authority that wasn't granted To them by Congress this Supreme Court Will smack them down so we can take some Solace knowing that even if this drags Out for years night really hope it Doesn't but even if it does if they get To the Supreme Court here with the Current make of the Supreme Court it Seems like a virtual certainty that they Will smack the SEC back now They do not have tolerance and I Actually love this they have no Tolerance for government over each year And I think we all know because we've Been following this case for over two

Damn years what we're seeing here is Extreme overreach by the SEC uh let me Jump down a little bit further in the Article though the sec's Reliance on a 1946 opinion in secv W.J howiko Which gave the SEC authority to regulate A contract to sell in an interest in an Orange Grove is an odd fit for crypto Assets and well ripe for the application Of the major questions Doctrine and to Make matters worse The Wall Street Journal and Bloomberg recently reported That these actions by the SEC appear to Be part of an administration-wide effort To Simply freeze crypto assets out of The traditional Financial system rather Than regulate them that's one more Unique fact that heightens the odds that Appellate judges will apply the major Questions Doctrine to the Ripple case So again it's all let's get a pause now Again it's all about government Overreach here the major questions Doctrine it's gigantic the the Overstepping that the SEC is engaging Here Couldn't be more optimistic for a Positive uh Supreme Court uh ruling Should it get to that case it's a good To get that placement I don't want it to I want a piece for our damn Community I Really do so if we can find some sort of Agreement between Ripple and the SEC After a ruling here even if Ripple

Technically loses I'm all for it that Maybe that's even what's probable Frankly we'll see Ah Anyway peace if the U.S Postal Service I Love this this is a funny comparison if The U.S Postal Service had sought to Regulate email using its authority over P.O boxes and required that only Certified postmen were allowed to Deliver this new email courts would have Rightly overturned it with the major Questions Doctrine the sec's assertion Over jurisdiction of what is now a Trillion dollar asset market and has Been as large as three trillion dollars Is surely a matter of such significance That the vague language contained in the Securities laws granting the SEC Authority over investment contracts Implicates the major questions Doctrine Rather than predict the outcome of the Ripple Lower Court opinion it would be Safer to predict that litigation over The Ripple case and the sec's other Crypto regulations will continue for Years As the legal questions are far too big To settle at the district court level Yeah so pause that's exactly why Depending on the ruling from Judge Torres there could be an opportunity for The SEC if Ripple loses for the SEC and Ripple 2 agree on what the remedies are

And then we don't see this thing keep Going but if this is a you know a slam Dunk for ripple here this isn't over Folks the SEC absolutely will appeal This thing I'd be shocked if they didn't Because there's too many legal avenues That they can still take And then they wraps up by standing Eventually the sec's discretion to Regulate crypto May well be Substantially constrained by the major Questions Doctrine until then This hope will prove little Solace to Crypto entrepreneurs seeking to come Into compliance and those who just want To understand the rules of the road very Well written I think that's insightful Too because because look I've mentioned A few times you know how Attorney John Dean has shared his perspective that Seriously it comes down to a Supreme Court rule yeah Very optimistic Ripple wins but what About additional logic behind that and That's part of the reason I wanted to Cover this because I haven't really Covered this level of detail and his Article did such an awesome job Explaining exactly why in plain simple Words that anybody with half a brain can Understand it's the major questions Doctrine we've already seen how the Supreme Court rules in situations like These this would apply with the secv

Ripple case so should it get there yes We'll have a happy ending I'm more Optimistic about a positive ruling at The Supreme Court level than I am at the District level with with judge Torres And I'm still optimistic don't get me Wrong I am definitely optimistic even at The district level but I'm much more Confident about what would happen at the Supreme Court level Look at who's in charge folks it'll be Very good for us but my gosh if we have To wait that long just please tell me That's not gonna happen I'm not a financial advisor you should Not buy or sell anything because of Anything I say right that would be a Very very very bad idea until next time To the Moon family sedan


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