Legal expert Bill Morgan recently discussed the SEC vs. Ripple appeal, addressing concerns among XRP holders. Morgan’s analysis indicates that while some legal comments, known as obiter dictum, might be revisited during the appeal, XRP’s fundamental status as a non-security is unlikely to be challenged.
With just 28 days left before the re-appeal window closes, both parties are preparing for what could be a crucial showdown. What will happen next?
Countdown to the Appeal Deadline
Morgan pointed out in his X post that the SEC has made it clear it is not trying to overturn the ruling that XRP is not a security. When the SEC asked for permission to appeal, it confirmed that XRP’s classification won’t be debated.
This reassurance suggests that while some legal details might be reconsidered, the main decision that XRP is not a security should remain.
Could Legal Loopholes Change Things?
Morgan, drawing on his knowledge of Australian law, noted that although obiter dictum could be reviewed if the main reasoning behind the ruling (ratio decidendi) is challenged, XRP’s status as a non-security is not at risk. He speculated that U.S. law might handle this similarly but acknowledged that the appellate court might interpret the issue differently.
Insights from a Former SEC Director
Marc Fagel, a legal expert and former SEC Regional Director, joined the discussion by agreeing with Morgan’s analysis. He mentioned that while the SEC could attempt to appeal this aspect of the ruling, it might not be a significant part of their strategy.
Fagel clarified that while the SEC has remained vague in several similar cases, it’s unlikely that the Second Circuit Court of Appeals would address XRP’s non-security status directly. He pointed out that even though the SEC has room to push for a broader appeal, it doesn’t necessarily mean that the court will take up that specific question.
The Road Ahead
Both Fagel and Morgan agree that while legal details might be discussed, the Second Circuit is unlikely to directly reconsider XRP’s classification.
In short, the chances of XRP’s security status being overturned seem low. Although the appeal could explore legal nuances, the core decision that XRP is not a security appears solid despite ongoing litigation.
As the appeal deadline approaches, the cryptocurrency world watches closely. What will happen next?
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