🕵️♂️ John Deaton’s Comments On Judge Analisa Torres’ Denial Ruling
Attorney John Deaton’s comments on Judge Analisa Torres’ denial of the motion for an indicative ruling in SEC vs. Ripple reflect a strong view that the SEC is now in a difficult position. Judge Torres rejected the joint motion from the SEC and Ripple as “procedurally improper,” emphasizing that the parties failed to use the correct legal process and did not meet the high standard required to vacate the injunction or reduce Ripple’s penalty. The judge’s order made clear that any such request must be properly grounded in the Federal Rules of Civil Procedure and justified by “exceptional circumstances.”
Deaton characterized the ruling as a “curveball,” suggesting that the judge is signaling frustration, particularly with the SEC. He noted that Judge Torres appears unwilling to simply approve a settlement without the parties making a compelling case, saying, “This is the judge saying to the SEC and Ripple, ‘I’m not rubber-stamping anything. Convince me.’” Deaton believes that the SEC, in particular, will have to “eat crow” and “fall on their sword” by making a much stronger argument if they want the court to grant their request. The burden is now on both sides to present a revised motion that addresses the judge’s procedural concerns and broader policy considerations, including public interest and recent developments in crypto regulation.
Despite the setback, Ripple’s legal team has emphasized that this procedural denial does not affect the company’s previous legal victories, including the finding that XRP is not a security when sold to retail investors. The settlement process is likely to continue, but both parties will need to return to court with a properly structured and well-justified motion.