Speculations about a potential appeal by the United States Securities and Exchange Commission (SEC) have raised concerns about its potential impact on the crypto market. However, Pro-XRP lawyer John Deaton has reassured XRP holders that even if the SEC appeals the recent ruling, it would not significantly affect them. Deaton represents over 75,000 XRP token holders and provided insights into the possible scenarios and complexities of enforcing the summary judgment.
The judge’s ruling, which concluded that the programmatic sale of XRP tokens through exchanges does not classify them as securities, has raised questions about the legal implications of an appeal. Deaton stated that an appeal decision could take up to two years, during which time the summary judgment would remain in effect. The timing of the SEC’s appeal process is still uncertain.
Stuart Alderoty, chief legal officer at Ripple, echoed Deaton’s sentiments by emphasizing that the SEC’s jurisdiction is limited to securities. If a token is not classified as a security, Alderoty argues that the SEC should not have a role in its regulation. He describes claiming jurisdiction where none exists as a political power move that ultimately harms everyone involved.
Judge Analisa Torres’ July 13 ruling affirmed that XRP tokens are not securities when sold on retail digital asset exchanges. However, the decision was not entirely favorable to Ripple, as the company was found to have violated securities laws by offering XRP to hedge funds and other institutional buyers.
These developments highlight the ongoing debate about the SEC’s authority over digital assets. The outcome of the potential appeal and its impact on the crypto market remain to be seen. In the meantime, XRP holders can find reassurance in the prevailing summary judgment and the legal representation of lawyers like John Deaton.