• Ripple Lawyer John Deaton has argued that the SEC has not cited any relevant case in the past 76 years that directly addresses secondary market sales of a digital asset like XRP.
• Coinbase lawsuit against the SEC could have an impact on the ongoing legal battle between the SEC and Ripple Labs.
• The outcome of Coinbase’s lawsuit is uncertain, and a summary judgement on the Ripple case could be made before May 6, 2023.
Ripple Lawyer Slams SEC
Ripple lawyer John Deaton has slammed the Securities and Exchange Commission (SEC), arguing that they have not cited any relevant case in past 76 years that directly address secondary market sales of a digital asset like XRP. This comes as part of an ongoing legal battle between Ripple Labs and the SEC.
Coinbase Lawsuit Against The SEC
The crypto community, particularly those who are XRP enthusiasts, have welcomed news of Coinbase’s lawsuit against the SEC. Many have expressed support for Coinbase’s decision to challenge the SEC’s actions, although its outcome remains uncertain. This could have an impact on Ripple Labs‘ legal battle with the SEC.
Howey Test Definition
In context of this case, it is possible for the SEC to argue that transactions in question fall within definition of security as established by Howey test and subsequent legal precedents. This test is used by courts to determine whether transaction qualifies as „investment contract“ and therefore as security.
The wait for Summary Judgement grows while there is significant discussion regarding this case. It is possible for judgement to be made before May 6th, 2023. A summary judgement is ruling made by court without full trial based on review of evidence and arguments presented by parties involved in dispute.
Overall, Ripple lawyer John Deaton has argued that no precedent exists in past 76 years regarding secondary market sales of a digital asset like XRP which stands at heart of current dispute between Ripple Labs and Securities & Exchange Commission (SEC). Outcome of Coinbase’s lawsuit against latter remains uncertain while summary judgement on former could be made before May 6th, 2023