Legal expert and amicus curiae for the blockchain business John E. Deaton has attacked the regulator’s legal staff as the cryptocurrency sector awaits the ultimate decision of the prolonged court fight between Ripple and the United States Securities and Exchange Commission (SEC).
Indeed, in a post on X on August 21st, Deaton accused SEC attorneys Jorge Tenreiro and the Enforcement Director Gurbir Grewal, who are now engaged in the litigation against crypto exchange Gemini, of learning nothing from the Ripple case.
“The fact that the SEC is unable to determine what is the security at issue only underscores the weakness of its position,” the response reads. It also fails to conform to the principle of fair notice and goes against basic fairness.
It later “argued that XRP ’embodied’ Ripple’s promises AND’represents’ the investment contract AND’represents’ the common enterprise,” which Deaton called a “circular nonsensical argument” because it implies that XRP is not a security but merely represents the second and third prong of Howey, which is “another way of saying XRP itself is a security.”
Last but not least, he emphasized how “a federal judge identified as out the SEC’s ‘hypocrisy’ and mentioned its lawyers ‘lack the faithful commitment to the law’ and will say anything, no matter how discordant with previous positions or statements, in order to achieve its litigation goals,” which he believes “doesn’t bother them because they actually think they are above the judge and the law.”
After Ripple, the blockchain corporation, filed an anticipatory objection to the motion, asking Judge Torres to prohibit the SEC from appealing owing to a lack of a clear legal issue, the SEC has only recently filed its move to certify an interlocutory appeal in the case against Ripple.
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