The continuing legal battle between the United States Securities and Exchange Commission (SEC) and payments company Ripple Labs Inc has reached a new level. The SEC now targets the firm’s vocal supporters, such as attorney John Deaton.
Since the regulator launched its complaint two years ago, Deaton has been Ripple’s most outspoken supporter. Deaton’s position has been substantial, from clarifying to the community to submitting amicus briefs as a friend of the court; it is evident that the SEC considers his presence worrisome.
According to a recent update, the SEC, through its lawyers, has attempted to have Judge Torres prevent Deaton from participating in the case, partly because he revealed their expert witness’s identity. According to the latest information, the court denied this request. She agreed that the expert witness for the commission should not testify on XRP holders.
This is a significant victory for Deaton, demonstrating the regulator’s eagerness to pursue those with vested interests in the dispute. Deaton said that the SEC attorneys are not the finest poker players in the area.
Depending on the judge’s bias, the anticipated summary judgment is now seen as a significant precedent for all parties as the action nears its conclusion. A victory for Ripple would be a great sigh of relief for the firm and the whole XRP community.
A victory for the SEC, on the other hand, would strengthen and encourage the regulator since it will be given a new mandate to pursue Web 3.0 corporations. Several experts, like John Deaton, feel that Ripple’s argument that XRP is not a security is robust and that the company may prevail against the SEC.
