Pro-XRP Lawyer Believes Unsealed Documents Won’t Impact Ripple’s Lawsuit Outcome

The recent unsealing of documents by former SEC official William Hinman has spurred discussions and rumors in the continuing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). John Deaton, a well-known attorney who supports XRP, is dubious about the impact of these documents on the outcome of the lawsuit. Deaton discusses the situation in a recent interview with Wolf of All Streets and clarifies possible future action for both Ripple and the SEC.

Unsealing of Hinman Documents, Limited Impact on Lawsuit

Deaton rejects the idea that the judge’s evaluation of whether Ripple’s sale of XRP qualifies as an investment contract will be significantly impacted by the unsealed Hinman documents. He highlights how little the speech’s content has to do with the main problem at hand. Deaton thinks the judge may reject Hinman’s assertion that XRP is not a security even if Hinman had made it, given that Hinman is only one SEC employee. Here’s what he had to say, “There’s nothing in the speech that’s going to affect the judge’s analysis of whether Ripple sold XRP as an investment contract. There’s nothing in there. And even if Bill Hinman had said XRP is not a security, the judge could disregard that because he’s just one official at the SEC.”

The pro-XRP attorney comments on the SEC and Ripple’s next move after the lawsuit’s verdict is made public. “If you look at the Ripple summary judgment brief, it’s really when it came out, I said it’s a brilliant brief and I hate it. It’s written for the [United States Court of Appeals for the] Second Circuit because it’s all about case law and all about you know the inherent nature of an investment contract, and a security and blah blah blah…

The Ripple Summary Judgment Brief and Potential Appeals

Deaton recognizes the tactical genius of Ripple’s summary judgment brief with regard to the subsequent actions after the lawsuit’s judgment. He acknowledges that if Ripple loses the case, the organization would probably appeal it to the Second Circuit of the United States Court of Appeals, citing precedent and the nature of investment contracts. Deaton hypothesizes that if the SEC loses, they might decide not to appeal because of the hostile environment they have seen in court hearings, where judges have voiced reservations about the SEC’s conduct.

So the case will undoubtedly be heard by the Second Circuit if Ripple loses. “If the SEC loses, I don’t think they appeal. Because why would they? They’re getting blasted. Almost in every court hearing, you hear the judge is taking issue with the way the SEC is conducting themselves.”

The importance of the unsealed Hinman documents is still in dispute as the legal conflict between Ripple and the SEC develops. Deaton is still dubious about its overall impact on the judge’s judgment, despite some people anticipating its potential significance. The outcome of the lawsuit will definitely influence the future of XRP and the legal framework for cryptocurrencies as Ripple and the SEC continue to negotiate the challenging legal terrain.