Amidst speculations surrounding the potential impact of the US SEC’s appeal on the crypto market, Pro-XRP lawyer John Deaton reassures XRP holders that the appeal, if it happens, will not significantly affect them.
The SEC’s Potential Appeal and XRP Holders
Following the judge’s ruling that XRP tokens sold through exchanges are not securities, concerns arise regarding the legal implications if the SEC chooses to appeal the verdict. John Deaton, representing over 75,000 XRP tokenholders, shares insights into the intricacies and potential outcomes of the appeal process.
On July 21, the SEC disclosed its plan to seek a review of the decision made in the Ripple lawsuit. Terraform Labs CEO Do Kwon also expressed his intention to utilize the XRP lawsuit verdict as a precedent to argue against the classification of digital assets as securities. Deaton believes the appeal process could extend over two years.
This is with the summary judgment continuing to govern the situation until a decision is reached.
XRP’s Victory
Despite the SEC’s appeal intentions, Deaton asserts that the recent ruling in favor of XRP is a significant win for the token and its holders. He urges people not to underestimate the importance of this victory for Ripple and XRP holders alike.
Stuart Alderoty, Chief Legal Officer at Ripple, added to the discussion. He stated that the SEC’s jurisdiction is limited to securities. If a token is not classified as a security, the SEC should not have a regulatory role in its affairs. Claiming jurisdiction where it does not exist merely serves as a political power move, ultimately harming all parties involved.
The Ruling’s Ambiguous Nature
Judge Analisa Torres’ July 13 ruling deemed XRP tokens sold on retail digital asset exchanges as non-securities. However, it also found Ripple in violation of securities laws when it offered XRP to hedge funds and institutional buyers. This ambiguity raises questions about the exact scope of the ruling’s impact on Ripple’s operations.
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