John Deaton Provides Latest Update on Ripple Lawsuit, Discusses SEC Appeal and Settlement Details

Ripple Lawsuit: Lawyer Emphasizes Qualified Immunity Challenge and Predicts Appeals Timeline

Prominent attorney John Deaton, who has been deeply involved in the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC), recently spoke at the first annual onXDC Live blockchain industry conference in Texas. During his speech, Deaton shed light on a critical legal aspect that raises doubts about the actions of the SEC – the concept of qualified immunity.

In simple terms, qualified immunity provides protection to government officials, including those at the SEC, from personal liability for their official duties. Deaton pointed out that this immunity poses challenges when it comes to holding regulatory decisions accountable.

Deaton stressed the need for a “smoking gun” in order to challenge the qualified immunity and sovereign immunity enjoyed by the SEC. Such evidence would demonstrate negligence on the part of SEC officials and potentially lead to the dismissal of immunity claims, paving the way for a civil conspiracy case against the SEC.

To support his argument, Deaton drew attention to the case involving Bernard Madoff, where investors sued the SEC for its failure to take action despite being repeatedly warned about the Ponzi scheme. Unfortunately, the judge dismissed the case, reinforcing the difficulties of holding the SEC accountable.

Regarding the Ripple case, Deaton provided insights into the appeal process. While an interlocutory appeal motion is currently in progress, a full appeal might only occur after the trial, significantly extending the timeline.

Deaton also speculated on potential outcomes, ranging from SEC officials testifying in court to a possible settlement negotiation. The latter hinges on the resolution of the Coinbase case, as the SEC’s stance on the securities status of various cryptocurrencies could influence the settlement of the XRP case.

In Deaton’s words, “There is no appeal right now, all the judge did was allow them to write a motion for an appeal for an interlocutory appeal. I predict she denies it and then when she denies it, they have to wait for a full appeal which, after the case, would be sometime in late 2024, which would take another 18 months, which would mean we’d be into late 2025 before the second circuit could ever hear it.”

The Ripple vs. SEC legal battle has been closely followed by the cryptocurrency community and investors. The outcome of this case will likely have significant implications for the regulation of digital assets and the future of Ripple’s XRP.

As the case progresses, the focus intensifies on challenging the qualified immunity enjoyed by regulatory bodies, such as the SEC, and advocating for increased accountability within the industry.