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Attorney John Deaton believes Judge Torres’ decision on XRP will significantly impact other tokens.
CryptoLaw founder attorney John Deaton has taken to Twitter to explain the importance of Judge Analisa Torres’ summary judgment decision in the SEC vs. Ripple lawsuit.
Popular YouTuber Says Americans Need to Fight
Attorney Deaton made the remark in response to a tweet by popular cryptocurrency YouTuber Scott Melker (Wolf of All Streets).
In a tweet today, Melker noted that if Americans do not fight back the SEC’s gross overreach, they will be left to trade only four crypto assets, such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) on exchanges that are run by Wall Street.
Notably, Melker mentioned the four crypto assets because SEC Chair Gary Gensler had previously labeled them commodities while calling other tokens securities.
Furthermore, Melker said the four digital currencies are the only coins traded on the EDX exchange, a newly-launched crypto trading platform backed by Wall Street titans, including Fidelity Digital Investments, Charles Schwab, and Citadel Securities.
Deaton Highlights the Importance of Judge Torres’ Ruling on XRP
Reacting to the tweet, attorney Deaton said Judge Torres’ decision gets potentially more significant as each day passes. He explained that if the judge issues an adverse ruling against XRP, then it is “status quo” with more political momentum to people championing anti-crypto campaigns, including Gensler, Warren Buffett, and Rep. Brad Sherman.
However, Deaton asserted that if Judge Torres’ ruling is favorable for XRP, then it is great news for other crypto assets and the entire market.
Judge Torres’ decision gets potentially more as each day passes. If it’s bad for XRP (notice I said XRP and not Ripple), then status quo with more political momentum to Gensler, Warren, Brad Sherman’s anti-crypto campaign. But if it’s great for XRP then great news for other…
— John E Deaton (@JohnEDeaton1) July 1, 2023
SEC Claims Authority Over Crypto
Meanwhile, the SEC has continued to claim jurisdiction over the entire crypto market. As reported earlier, Gensler stated that all crypto assets other than Bitcoin are securities. Following his remark, the SEC has embarked on a widespread crackdown against crypto-related businesses, alleging that they violated securities laws.
Last month, the SEC charged Coinbase and Binance with facilitating the trading of unregistered securities, including ADA, SOL, MATIC, and ALGO.
Significance of Judge Torres’ Ruling on Other Tokens
Recall that the SEC claims XRP is a security, thus implicating the coin’s secondary market transaction. Notably, Judge Torres is expected to rule on whether XRP secondary market sales constitute securities.
If the judge rules that XRP is not a security, it will create a legal precedent challenging the SEC’s authority to regulate a significant portion of the market.
Consequently, other token issuers can also make reference to the ruling and argue that their respective crypto assets do not constitute securities.