Key Takeaways
- The athorney of XRP holders thinks the next decision of Judge Sarah Netburn will be a gamechanger
- In a series of tweets, John Deaton has called the upcoming decision the biggest to date
- Rippe is embroiled in a legal battle with the SEC over alleged illegal sale of the XRP token
YEREVAN (CoinChapter.com) – John Deaton, the attorney representing thousands of XRP holders, has just thrown a prediction bomb in the Ripple vs. SEC case. According to the founder of CryptoLaw, the Ripple case is about to take an interesting turn. All eyes are on Judge Sarah Netburn. But, first, she will have to decide on the motion for reconsideration, which the SEC filed last week.
According to the attorney, the judge’s decision will potentially be the biggest in the Ripple case to date.
“Judge Netburn’s decision on the motion for reconsideration will be the biggest decision in the @Ripple case. I say that b/c I don’t believe the motion to strike the FND is a significant one b/c the Judge isn’t deciding w/r Ripple had fair notice, but only w/r it can argue it,”
Deaton claimed in a Twitter post.
John Deaton joined the SEC vs. Ripple case after representing thousands of XRP Holders with Amicus Curiae status.
Recommended: Additional SEC vs. Ripple documents unsealed – fair notice defense under fire?
XRP holders await Judge Netburn’s decision on the Ripple case
The court recently unsealed two legal memos from 2012. In the memos, the law firm Perkins Coie LLP offered legal advice on avoiding making XRP security in the eyes of the SEC.
The magistrate also recently ruled on the deliberative process privilege (DPP). In the ruling, she declared the speech, notes, and drafts from the former director of the Division of Corporate Finance, William Hinman was not privileged.
As a result, the court ordered the SEC to publish the draft speech Hinman delivered on June 14, 2018.
Worried by the ruling, the Securities and Exchange Commission appealed to the court in a counter-motion to reconsider. Declaring Hinman’s position on the matter as his personal opinion, the SEC insisted the document remain away from the public eye as it is protected by the Department of Public Prosecutions (DPP).
Attorney Deaton claims the motion relates to 63 emails involving Hinman’s speech where Hinman claimed that Ethereum (ETH) was no longer a security. However, in the entire communication, it is unlikely that no one would have referred XRP.
So it begs the question, what was the decision if someone did bring up the XRP? Did the SEC legal team consider XRP a security or not, and what changed later that forced the SEC to file a case against Ripple?
“If Judge Netburn ultimately rules that the emails must be turned over, it is HUGE. Don’t forget, even if the SEC persuades her that the emails are covered under the DPP, she can still pierce the privilege and order the documents produce,“
Deaton argues.
Recommended: XRP rallies over 40% on hopes that SEC vs. Ripple case would come to an end
Ripple CEO seems confident of his chances of winning
In early 2018, XRP soared above the $3 mark, making it the world’s second-largest cryptocurrency. That was six months before the Hinman speech. Ripple has long alledged the SEC was biased against Ripple, and the decision has helped Ethereum get rid of its strongest competition at the time.
Meanwhile, Ripple CEO Brad Garlinhouse feels vindicated after Ripple revealed in court that the company had sought legal advice before offering XRP to the public.
The decision of the SEC to file a motion for reconsideration shows the commission is losing leverage. However, the decision now lies with Judge Netburn.
At the time of writing, XRP changes hands for $0.7686, some 80% below its all-time high. But, of course, as we draw closer to the final verdict, any positive decision can affect the price drastically.
