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The ongoing legal brawl between the United States Securities and Exchange Commission (SEC) and payments firm Ripple Labs Inc is reaching a whole new level, with the regulator now going after strong supporters of the firm like attorney John Deaton.
Deaton has been the most vocal advocate of Ripple since the regulator filed its lawsuit more than two years ago. From providing clarity to the community to filing amicus briefs as a friend of the court, Deaton's role has been prominent; clearly, the SEC finds his role threatening.
In a recent update, it appears that the SEC, through its lawyers, has tried to get Judge Torres to ban Deaton from participating in the case partly because he disclosed the name of their expert witness. According to the update, the judge did not assent to this request. She also agreed that the commission's expert witness should not testify about XRP holders.
They literally asked the Judge to revoke my amicus status over my motion asking permission to file an amicus brief challenging this so-called #XRPHolder Expert. 🤦♂️
— John E Deaton (@JohnEDeaton1) March 7, 2023
These Ivy League SEC Lawyers aren’t the best poker players I take it. https://t.co/jjhXtux3EU
This is considered a major win for Deaton as it shows the desperation of the regulator to go after parties fully invested in the lawsuit. Deaton commented that the SEC lawyers appear not to be the best poker players around.
Important judgment for all
With the lawsuit nearing an end, the summary judgment being expected is now considered a very important precedent for all, depending on the leaning of the judge. A win for Ripple will be a huge sigh of relief, not just to the company, but to everyone in the XRP community.
A win for the SEC, on the other hand, will further empower and embolden the regulator as it will receive a fresh mandate to go after companies in the Web3.0 space. For now, many experts, including John Deaton, believe that Ripple's defense that XRP is not a security is very strong and that the firm may defeat the SEC.
Vladislav Sopov
Gamza Khanzadaev
Tomiwabold Olajide
