The Big Date for Ripple Lawsuit Approaches, John Deaton Shares Some Good News

The Ripple Defendants’ Motion for Summary Judgment in the continuing litigation was opposed by the SEC in its Memorandum in Opposition, which was submitted over the weekend.

On Twitter, a Ripple supporter going by the handle “bill” has voiced his opinions over the SEC’s responses to the motion made by the Ripple defendants. He believes that the SEC’s response to Ripple has been weak and that the SEC would have been in a better position if it had focused on specific XRP sales or offers made by Ripple.

In his criticism, he calls the SEC’s targeting of all XRP sales and offers for the past eight years, including those in secondary marketplaces, “an outrageously wide case.”

The founder of CryptoLaw, John Deaton, believes that Ripple may benefit from the SEC’s ambiguity. He stated: “The SEC didn’t give any specific sales using contracts, which is fantastic news for Ripple. Just all transactions, not any particular ones. I fail to see how it might hold.” 

The SEC mischaracterizes Ripple’s attempt to interpret an undefined legislative word, “investment contract,” with reference to the pre-1933 blue sky law instances, according to “Bill,” a legal expert, showing symptoms of weakness in its legal justification. However, he only sees two of the SEC’s arguments as being really compelling.

First, restricting the term scheme may be a drawback for Ripple. According to the Ripple argument, the term “transaction or scheme” just indicates that a judge should consider the instrument’s broader context. The SEC notes that Ripple does not identify any cases to support this claim. Second, the SEC emphasizes that Section 5 of the Securities Act forbids both sales and unregistered offers.

The Ripple lawsuit’s upcoming important dates are anticipated in the interim. The parties are anticipated to submit publicly redacted versions of the opposition briefs today, October 24. It was previously announced by John Deaton that part of the exhibits, totaling 440, will be made available to the public on October 24. The parties will submit publicly redacted versions of the reply briefs on November 21, which is a significant date.