Crypto lawyer John Deaton has stated that the US Securities and Exchange Commission’s (SEC) appeal against the Summary Judgment delivered by Judge Analisa Torres is unlikely to significantly impact XRP. Deaton, who represents over 75,000 XRP token holders, explained that even if the SEC does appeal, it would take up to two years for a decision to be issued by the 2nd Circuit. In the meantime, the Summary Judgment ruling that the programmatic sale of XRP tokens via exchanges does not qualify them as securities will prevail as the law. He emphasized the significance of this win for XRP and its holders, stating that the appeal is not a setback.
Stuart Alderoty, the chief legal officer at Ripple, responded to the debate about the SEC’s oversight on tokens by highlighting that a securities agency only has jurisdiction over securities. He argued that if there is no security involved, the SEC has no role or jurisdiction over it. Alderoty described the SEC’s claim of jurisdiction in such cases as a political power play that ultimately hurts everyone but helps no one.
Earlier reports had suggested that the SEC had no choice but to pursue an appeal. However, it is the aspect concerning the institutional sale of XRP that may offer some room for settlement negotiations, as Judge Torres ruled that only the retail sale of XRP does not fall under the category of securities assets.
The outcome of the SEC’s appeal and its potential impact on XRP and its holders remain to be seen. However, legal experts and representatives from Ripple maintain that the Summary Judgment in favor of XRP is a significant win. The final decision regarding the classification of XRP as a security will now rest with the 2nd Circuit, which could take several years to reach a verdict. In the meantime, XRP holders can take solace in the fact that the ruling will hold and safeguard their interests.
