Potential Appeal by SEC Not Expected to Significantly Impact XRP Holders, According to Pro-XRP Lawyer
Amid concerns of a potential appeal by the United States Securities and Exchange Commission (SEC) affecting the crypto market, Pro-XRP lawyer John Deaton has reassured XRP holders that their holdings would not be significantly affected, even if the agency were to appeal the recent ruling.
After a judge’s ruling determined that the sale of XRP tokens through exchanges does not classify them as securities, questions have arisen regarding the legal implications should the SEC decide to appeal the decision. Deaton, who represents over 75,000 XRP tokenholders, elaborated on the potential scenarios and complexities involved in enforcing the summary judgment.
The SEC recently stated in a filing concerning the case against Terraform Labs CEO Do Kwon that it plans to request a review of the decision made in the Ripple lawsuit. Kwon has expressed his intention to use the XRP lawsuit verdict as a precedent to argue against classifying digital assets as securities.
Deaton’s explanation suggests that the appeal process could last over two years, during which time the summary judgment would remain in effect. The timing of the SEC’s initiation of the appeal process in response to the ruling remains uncertain.
“An appeal is not even close to being a setback. Don’t let anyone underestimate how significant this win is for XRP and XRP holders and Ripple,” Deaton commented.
In response to discussions on the SEC’s authority over tokens, Stuart Alderoty, Ripple’s chief legal officer, tweeted that the agency’s jurisdiction is limited to securities. He emphasized that if a token is not classified as a security, the SEC should not have a role in its regulation. Asserting jurisdiction where it does not exist is merely a political power move that ultimately harms all parties involved.
Judge Analisa Torres’ ruling on July 13 concluded that XRP tokens are not securities when sold on retail digital asset exchanges. However, Ripple was found to have violated securities laws by offering XRP to hedge funds and institutional buyers.
It remains to be seen how the situation will develop and whether the SEC will proceed with its appeal. XRP holders will be closely watching for any updates that could potentially impact their holdings.
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