As the legal showdown between the Securities and Exchange Commission (SEC) and Ripple continues to gain momentum, an unexpected focal point has emerged: XRP secondary market trading. This aspect of the case has attracted the attention of not only the crypto world but also legal and financial experts, prompting a flurry of speculation and debate.
A Clash of Titans on Twitter
The spotlight on XRP secondary market trading was turned on when Marc Fagel, former SEC regional director, remarked that Judge Analisa Torres is unlikely to address it in her summary judgement. A tweet by an XRP enthusiast, known as “DS,” ignited a heated discussion after he posed the question to John Deaton, founder of CryptoLaw and an outspoken supporter of Ripple.
Judge Torres Will Address XRP Secondary Trading
John Deaton, who also serves as counsel for thousands of XRP investors, disagreed with Fagel’s prediction. While he acknowledged that Judge Torres may choose to focus only on pertinent issues, Deaton expressed confidence that secondary market sales of XRP would be among them.
The Big Three: Why Deaton is Confident
Deaton’s confidence hinges on three compelling reasons that make it almost inevitable for Judge Torres to discuss XRP secondary market trading in her upcoming ruling.
- SEC’s Summary Judgment Motion: According to Deaton, the SEC’s argument that buying XRP is an investment in a common enterprise necessitates the judge’s attention on secondary market sales. The SEC believes XRP is the glue binding Ripple and its investors, even if the coin is used as a legal tender elsewhere.
- The Pressure of Amicus Briefs: A host of amicus briefs filed on behalf of XRP holders, including Coinbase, SpendTheBits, and TapJets, all highlight the significance of XRP’s secondary market trading. Ignoring such an important facet of the case after receiving numerous briefs would be highly unusual, Deaton argued.
- Reflections of the LBRY Case: Deaton reminds us of the LBRY lawsuit where secondary market trading played a crucial role. If Ripple loses at summary judgment and XRP secondary market trading remains unaddressed, Deaton plans to file a motion to participate in the penalty phase of the Ripple lawsuit.
Looking Ahead: Ripple vs. SEC
While the SEC’s stance on Deaton’s involvement remains uncertain, the CryptoLaw founder is prepared for all outcomes. With every move in this lawsuit closely watched by investors, regulators, and cryptocurrency enthusiasts alike, the anticipation surrounding Judge Torres’ ruling is palpable.