Attorney John E. Deaton expects the SEC and Ripple case ruling tonight or in a couple of weeks.
He also believes that the court’s recent decision is a huge victory for XRP holders.
The Ripple Labs and US Securities and Exchange Commission lawsuit is edging to an end after Judge Analisa Torres released her ruling on the motion filed by both parties to rule out expert testimony. This was disclosed in a tweet by Attorney James K. Filan, sharing a copy of the Judge’s ruling. In her Daubert motion ruling, the judge denied and granted a motion in part from both parties.
Attorney John E. Deaton, the founder of CryptoLaw and a representative of thousands of XRP holders as a friend of the case, has disclosed that he does not expect any significant delay from the judge to give her ruling on the summary judgment motion. According to him, the judge could release her ruling as early as tonight or in a few weeks.
I seriously doubt that we will see a significant delay from here. Could be tonight or in a couple of weeks.
Court strike out testimonies from SEC’s experts
Last week, the attorney observed that the ruling of whether XRP is a security could take about two more months to come out.
With the latest ruling, it is said that the XRP holders appear to be the biggest winner. The court granted in part Ripple’s motion to strike out testimony from the SEC’s Expert No. 1. In addition, the judge struck out an opinion from the SEC’s Expert No. 4 concerning the risk of XRP Ledger if Ripple “disappeared.”
Deaton explained:
@Ripple’s Motion to Exclude Expert No. 1 from testifying is GRANTED as to his first opinion about the perceptions of a reasonable XRP purchaser, and DENIED as to the remainder of his testimony.
– Judge Torres
Now try and tell me #XRPHolders don’t make a difference!
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The expectation of victory for Ripple
According to reports, these are very important as they speak to the fact that XRP holders purchased the asset in expectation of profit from the efforts of Ripple. This is a bitter pill for SEC to swallow especially with the claims that all XRP sales represented unregistered securities sales. This also speaks to the third and fourth elements of the Howey Test.
A Ripple-pro attorney and a partner at Hogan and Hogan, Attorney Jeremy Hogan have also confirmed that the latest ruling makes it difficult for SEC to come up with substantive proof that XRP holders purchased the asset with expectations of profit from the effort of Ripple.
The SEC has to prove that you had a REASONABLE expectation of profits from Ripple’s efforts.
And the Judge just struck the SEC’s ONLY Expert Witness on that subject.
So, now, how the heck can the SEC prove “reasonable” reliance? Who will testify?
Just thinking out loud.
Hogan further stated that even though the judges maintained that the opinion of SEC’s Expert No. 3 on Ripple’s incentives and actions to influence XRP’s price could decide whether XRP holders had any expectations of profit, it could only have a less significant implication on the case. Deaton has also stated that he expects the court to clarify the secondary market sales of XRP, which the SEC claims to be an unregistered securities offering. If the judge opposes SEC’s position on this, it could be a victory for XRP holders even if Ripple loses at the district court. When this happens, the crypto market could record a massive run.
