SEC’s Ripple Appeal Unlikely to Affect XRP Holders, Says Attorney John Deaton

In the wake of the recent ruling that reclassified the programmatic sale of XRP tokens as non-securities, the crypto market has been abuzz with speculation about the potential repercussions of a possible appeal by the United States Securities and Exchange Commission (SEC).

However, John Deaton, a prominent Pro-XRP lawyer, 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 challenge the ruling.

Ripple Community is Restless

The recent judgment by Judge Torres, which concluded that XRP’s sales through exchanges are not securities, has given rise to 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.

SEC Appeal Talks Creates Market Unrest

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.

The Strength of Judge Torres’ Decision

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.

Investors, Rest Easy.

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.

What do you think of the SEC’s chances of overturning Judge Torres’s ruling? Tell us!