In a recent video for CryptoLawUS, John Deaton, the well-known attorney and representative of XRP holders in the SEC case against Ripple, discusses the inconvenience of waiting for a final decision. Deaton admits people are making assumptions and expressing irritation at how long the case has dragged on.
Based on his own experience, Deaton states, “Well, today I was working on a case that was filed in 2018 by me; there are about three of these cases. It’s 2018. That was five years ago. So this delay is normal for me because that is the civil justice system.
Deaton underscored the complexity of the situation, noting that Ripple and the SEC have made multiple motions for summary judgment in responses to the case and objections to each other’s requests. In addition, the case is complex and involves hundreds of pages of arguments for the judge to wade through.
Six months ago the answers should have been sent; a Daubert motion was also filed on March 6, dealing with the admissibility of experts. It was pointed out that the judge’s summary judgments were issued anywhere from the same day as the Daubert decision to six months later, based on earlier rulings she issued in related cases.
To dispel the myth that this case is taking much longer than her previous ones, it was expected that a decision in this case could be made by September 6. The judge is likely taking time to think carefully about his decision, given the importance of this case and the scrutiny it will receive from many parties, including appeals courts.
As for the length of the case, the eminent lawyer argued that this case, which fills a regulatory gap, is a case of first impression because no other case has dealt with secondary sales in this way. Fifteen amicus briefs were also submitted, highlighting the importance of the case to US international trade, finance, and economic policy.
It should be noted, according to Deaton, that Judge Torres has a wide range of duties and objectives while presiding over more than 500 pending cases, including 44 criminal cases. Despite some claims to the contrary, it is extremely important to recognize the importance of each case in the case, even those involving defendants who face harsh penalties.
Deaton dismisses the idea of anything sinister going on in this case as absolute nonsense. While some argue that Judge Torres is on the SEC’s payroll and that she is doing inside work, Deaton strongly doubts why the judge would then rule against the SEC in the first place, such as by ordering them to release Hinman’s emails.
“Okay, so if she was corrupt and on the SEC’s payroll, she would never have released the Hinman emails that they fought so desperately to keep private.” He said on the matter.
Although Deaton said he was pleased with the appointment of Judges Netburn and Torres, he said he didn’t necessarily agree with every decision they made, but that they were generally fair. He cited the SEC’s exclusion of a witness who claimed to speak on behalf of XRP holders but had never even spoken to one.
He said: “Are you really going to sit there and say, oh, she just did that to show that she’s fair. Let’s join the reality. Get out of the metaverse and let’s get back to reality. Please. Is not.”
Finally, Deaton concluded that if the ruling were in favor of Ripple, the SEC could file a notice of appeal; if it is in the SEC’s favor, the SEC may still decide to appeal or negotiate with Ripple.
Given the importance of the case and the likelihood that it will reach the US Supreme Court, the judge will take much-needed time before making a final decision, knowing that the Second Circuit and other high-ranking judges will scrutinize it.