Attorney Deaton said Judge Torres could reject SEC’s wild sweeping theory and give Ripple an outright win.

In a Twitter thread yesterday, Deaton explained that while he does not believe Judge Torres agrees with the Blue Sky argument, he speculates that Ripple could win the SEC in the legal brawl that has lingered for more than two years.

According to Deaton, Judge Torres could get around Ripple’s XRP sales since the SEC did not apply the Howey Test to every transaction. Instead, the regulator claimed that “XRP itself is a security.” 

“Essentially, the SEC is applying the old “But For” causation test in this case. The SEC essentially argues but for Ripple executives (Jed, Chris) creating XRP, XRP wouldn’t exist. But for Ripple helping create a secondary market for XRP, a secondary market wouldn’t exist,” said attorney Deaton. 

The SEC also argues that past and present XRP sales are securities. The regulator argues that countries outside of the U.S. can only declare XRP as a currency due to Ripple’s efforts, Deaton said, adding: