John Dayton reveals the necessary steps Ripple and the SEC must take to get Judge Torres to grant a new ruling in the XRP lawsuit.
Following Judge Torres' ruling, in which he denied Ripple's SEC motion for an indicative judgment, legal experts have offered several opinions on what's next in the long-running legal battle.
Pro-crypto attorney and former Senate candidate John Dayton has also commented on the decision and revealed what both sides should do before Judge Torres modifies his decision in the $XRP case.
What Ripple and the SEC Should Do for New Decision in XRP Lawsuit
In a live broadcast, John Dayton said that if both sides are to seek a new ruling in the XRP case, the SEC will have to admit its mistakes and resign from its previous arguments.
He added that the commission would have to work with Ripple and refer to bills currently in Congress related to digital assets.
In doing so, the agency will state that crypto-assets are more akin to commodities than securities and do not necessarily fall under the SEC's purview.
Judge Torres denied Ripple's SEC motion on the grounds that it was "practically inappropriate." The SEC asked the court to grant Ripple relief from the injunction and reduce the civil penalty to $50 million.
In order for Judge Torres to grant the request, Dayton believes the SEC would have to argue that Ripple's $XRP sale did not harm anyone and that the injunction limits the crypto firm's business because it would like to sell the altcoin to financial institutions.
He also remarked that he should argue that the injunction only harms an American enterprise and other businesses that want to do business with Ripple.
As Judge Torres noted, in granting a motion for summary judgment, the district court "must determine whether the proposed consent decree is fair and reasonable, with the additional requirement that the public interest would not be undermined if the consent decree included an injunction."
Another legal expert shares ideas about what both parties should do.
Legal expert Fred Rispoli echoed similar sentiments as John Dayton, noting that a new verdict in the $XRP lawsuit would not be easy. As for what the two sides should do, he said they should file a 25-page motion, detailing all the other cases they have left.
He also suggested that the SEC file a declaration on behalf of the commissioners and explain the commission's failures to act meaningfully on crypto guidance.
The legal expert opined that the agency will likely take this step, although it could take at least two to three weeks for Ripple and the SEC to gather their arguments and refile the motion. Rispoli added that it will take another week or two for Judge Torres to rule.
XRP price dropped over 4% after Judge Torres' latest ruling in the XRP lawsuit. At the time of writing, the altcoin is trading at around $2.40, down about 2% in the last 24 hours.
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