Ripple's lawyer John Deaton expressed that the SEC's logic regarding XRP secondary sales is flawed. The lawyer made his statements on Twitter.
John Deaton, Ripple's lawyer, asked the SEC to provide a single example that proves there is an investment contract without any privacy or communication between a buyer and a seller or a supporter. Deaton also noted that the SEC has failed to substantiate its claim.
Deaton argues that, considering all laws, the SEC has no evidence to support the theory that secondary market sales are securities. He also disagrees with those claiming that the SEC has the right to pursue unsupported new theories under the law. According to Deaton, if the SEC is presenting new and unsupported theories, then he advocates for the application of the Fair Notice Defense.
John Deaton believes that the judge in the Ripple-SEC case is likely to address the issue of secondary market sales. Deaton makes his statements as follows: Firstly, the SEC's summary judgment motion essentially forces the judge to accept it almost as drafted. Secondly, Deaton believes that the judge will choose not to remain silent on various amicable briefings presented in the Ripple dispute, which could provide more information about secondary market sales.