The Ripple case, which has been in the district court for some time, may reach the U.S. Supreme Court before Congress creates a regulatory framework for the crypto industry, according to famous crypto Attorney John E. Deaton.
The founder of CryptoLaw expressed this view on Twitter, following indications that the United States Securities and Exchange Commission (SEC) had no plans to slow down its accelerated crypto enforcement efforts.
While the case would first need to go to the circuit court of appeal before it can be taken to the Supreme Court, Deaton’s view highlights the potential for the case to drag on for some time.
Speculation Mounts Over Outcome of Ripple and SEC Case
The Ripple case is being closely watched by the crypto community, with many eagerly awaiting the summary judgment expected by the end of March. United States lawyer Jeremy Hogan recently suggested that presiding judge Analisa Torres may have already determined whether XRP is a security.
Hogan made the conclusion after noticing that the judge cited the securities law case Marine Bank v. Weaver at least three times in her most recent ruling while discussing the perspective of XRP holders who bought the cryptocurrency.
The ruling excluded the SEC’s top expert witness, Patrick Doody, who was tasked with analyzing the expectations of XRP buyers, but allowed Ripple’s experts on the differences between Ripple’s contracts and those in the Howey case, the tax treatment of XRP, the accounting treatment of XRP, and currency experts on XRP to remain on the record.
Potential Implications
The Ripple case could have significant implications for the wider crypto industry, particularly in the United States. As previously reported, Ripple has faced accusations from the SEC that XRP is a security and, therefore, subject to regulation.
If the court ultimately determines that XRP is not a security, it could pave the way for other cryptocurrencies to avoid being subjected to the same level of scrutiny. However, if the court upholds the SEC’s position, it could create significant hurdles for other cryptocurrencies and startups in the industry.
