Despite his strong belief that blockchain payments firm Ripple Labs Inc will come out victorious in its lawsuit against the United States Securities and Exchange Commission (SEC), pro-crypto attorney John Deaton has given an insight into what might happen if the regulator wins.
Deaton took to his Twitter account to respond to the unfair attempt by regulators to send an anti-crypto message, per a tweet from Fox Business correspondent Eleanor Terrett, who shared insights into Signature Bank's closure.
According to him, should the judge presiding over the Ripple-SEC case align with the regulator's claims that all XRP transactions, including those traded on the secondary market, are securities, then the regulator will be unstoppable in pushing for a crackdown.
In his words, Deaton said such a verdict would provide SEC Chairman Gary Gensler both the cover he so craves as well as the momentum to bring similar lawsuits against companies operating in the Web3.0 space.
As each day passes, Judge Torres’ decision in the @Ripple case becomes more significant. If she wholeheartedly adopts the @SECGov’s theory that all transactions of #XRP including #XRP traded in the secondary market are securities, it will provide Gensler both cover and momentum. https://t.co/ojuZxcK26e— John E Deaton (@JohnEDeaton1) March 13, 2023
The comments were inspired by a comment made by Barney Frank, a Signature Bank Board member, who said the firm has no liquidity issues but was still closed down by regulators anyway.
Predicting favorable outcome
Considering the importance of the outcome of the Ripple-SEC lawsuit, Deaton has been at the forefront of renewing hope that the lawsuit will end in the former's favor. According to the recent verdict given by the judge with respect to the testimony of expert witnesses, a stronger leaning was given to the crypto payments firm than to Ripple.
Besides Deaton, expert lawyer Scott Chamberlain has also predicted that the payments company is likely to win the lawsuit in the end. Scott argued that most of the premises upon which the arguments of the SEC are hinged are not admissible, considering that a good block of XRP transactions took place on offshore exchanges where the SEC has no jurisdiction.