John Deaton took to Crypto Law, a U.S. government website, subtitled ‘U.S. Legal and Regulatory News for Digital Asset Holders’ and posted a short article on 28th September, criticizing the SEC’s desperate attempt for an interlocutory appeal. 

Contents of the Letter – 

The post began with the first and foremost acknowledgment of Ripple’s win against SEC in the month of July, and not being able to accept that and to save its face, the SEC filed a letter for interlocutory appeal to Judges Torres. 

Purpose of the Interlocutory Appeal – 

The SEC sent Judge Torres a pre-motion letter outlining the agency’s intention to pursue an interlocutory appeal of the Judge’s judgment that the defendants’ programmatic and other XRP sales violated the Howey test.

John Deaton’s response – 

According to John Deaton, he expected Judge Torres to grant the request, which later came true. He feels the action allows the judge to clearly explain her thinking in the case, making it “appeal-proof,” as well as allowing her to answer whatever Judge Jed Rakoff has stated. 

In the SEC v. Terraform Labs case, Judge Rakoff denied the company’s petition to dismiss and disagreed with Judge Torres’ approach to Howey. The SEC claims that Torres’ decision might have an influence on their other comparable litigation. However, this is their weakest argument.

Currently, there are many cases that are connected in the crypto ecosystem, and each case sets a solid precedent for the cases that haven’t yet received a decision. For instance, Do Kwon and the LBRY case are developing a whole new defense based on the judge’s decision, demonstrating how crucial the case is overall.

What Does the Future Hold

The ruling from Judge Torres has set a significant precedent by recognizing the potential impact of decentralized technologies on free speech and innovation. As more cases emerge, the crypto ecosystem eagerly awaits further rulings that could shape the future of this rapidly evolving industry. 

According to Deaton’s opinion, the SEC’s request for an appeal is a “desperate tactic of a regulator who lost the case.” 

Deaton’s statement emphasizes the litigiousness of the situation and the significant gap between regulators and advocates of decentralized technology. It also implies that the decision of this appeal can have significant ramifications for all parties concerned, not just the people directly engaged. This marks a turning point in the continuing conflict between authorities and cryptocurrency fans since the stakes are enormous and both parties are expected to fight fiercely to preserve their views.

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