In the aftermath of the recent ruling that classified the programmatic sale of XRP tokens as non-securities, there has been speculation about the potential impact of a potential appeal by the United States Securities and Exchange Commission (SEC) on the crypto market. However, prominent Pro-XRP lawyer, John Deaton, has taken to Twitter to reassure XRP holders that the effects on them are not likely to be significant, even if the SEC decides to appeal the ruling.
Here’s what XRP Holders Should Keep in Mind:
The recent judgment by Judge Torres, which concluded that XRP’s sales through exchanges are not securities, has raised new questions about the legal consequences if the SEC chooses to challenge the decision. Representing more than 75,000 XRP token-holders, John Deaton has shed light on the potential scenarios and complexities surrounding the implementation of the summary judgment.
Over the weekend, discussions surrounding the possibility of an SEC appeal caused some unease among investors, leading to cautious sentiment in the market. However, John E Deaton, a Pro-XRP and Amicus Curiae attorney, provided a positive analysis of the potential appeal and its outcomes. He emphasized that even if a request were to occur, the ruling by Judge Torres would remain the governing law for at least the next two years during the appeal process. This means that the SEC would have little success in challenging the judgment.
According to Deaton, the Second Circuit, where the appeal would be filed, is unlikely to find fault with Judge Torres’s application of the 3rd Howey factor. As such, it would not guarantee a victory for the SEC regarding Programmatic Sales. Notably, Judge Torres would still have the authority to assess the other two factors, and she could come to the same conclusion that the SEC did not satisfy the common enterprise factor, which is considered a more difficult factor to meet.
John Deaton’s analysis suggests that the ruling by Judge Torres would continue to govern for the next two years, providing a measure of stability and reassurance to investors. The Second Circuit could handle the appeal, but it’s unlikely to overturn Judge Torres’s decision on the 3rd Howey factor. This could be good news for XRP holders. However, the situation is legally complex, so market participants should stay alert as things develop.
