SEC Must Admit XRP Lawsuit Misstep to Sway Judge, Says Crypto Lawyer

Crypto attorney John E. Deaton has stated that the U.S. Securities and Exchange Commission (SEC) must admit its mistake in its lawsuit against Ripple before it can expect Judge Analisa Torres to reconsider her ruling. According to a video shared on X, Deaton argued that without such an admission, the SEC’s ongoing efforts to challenge the decision will likely fail.

Ripple was sued by the SEC in December 2020 for allegedly selling XRP without first registering it as a security. Last month, the judge declared that XRP isn’t a security by its nature and granted Ripple a significant victory. Even after the ruling, the SEC challenged and appealed the decision, hoping to overturn the outcome.

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Admitting Legal Error Could Strengthen SEC Credibility

Deaton, who represents tens of thousands of XRP holders, believes the SEC’s approach lacks legal merit unless it acknowledges the core mistake in the case. He explained that courts rarely reverse decisions without new evidence or a clear legal error. Admitting fault would be necessary to gain the court’s attention for reconsideration.

Deaton stressed that openly addressing the problem with the legal strategy before the court could make more of an impression than continuing to challenge the earlier decision. Deaton suggested that conveying the error of their legal strategy to the court would demonstrate the SEC’s efforts to be above board. As a result, Deaton argued that the court would be more likely to reconsider its decision in the case.

Admission Could Shift Enforcement and Rebuild Public Trust

Deaton added that the SEC’s reluctance to admit fault could stem from concerns about its broader enforcement authority. A concession in this case might impact other crypto-related actions and influence ongoing legal strategies. However, he argued that taking responsibility could improve the agency’s public image and support more balanced regulation in the crypto space.

After Judge Torres’ decision, Ripple continues to assert that this ruling clarifies XRP’s legal standing. Ripple’s leadership has consistently emphasized how the ruling reinforces Ripple and the industry. The decision has strengthened Ripple’s ambitions to expand its operations worldwide.

The SEC’s response to the situation under review will be closely watched in the months ahead. Deaton’s comments intensify the call for greater openness and a redefinition of the SEC’s course based on established legal precedents.

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