Amid speculation that a potential appeal from the US SEC could negatively impact the crypto market, Pro-XRP attorney John Deaton made it clear that even if there is an appeal from the agency, it would not significantly affect XRP holders.
After the judge’s decision declaring that the programmatic sale of XRP tokens through exchanges does not classify them as securities, a new question arises regarding the potential legal implications if the SEC decides to appeal this decision. Lawyer Deaton, who represents over 75,000 XRP token holders, elaborate about possible scenarios and the intricacies of how summary judgment would be executed.
The United States SEC said on July 21, in its filing regarding the case of Terraform Labs CEO Do Kwon, that it plans to seek a review of the decision made in the Ripple lawsuit. The move came after Kwon expressed his intention to use the XRP trial verdict as a precedent to argue that digital assets should not be classified as securities.
A call doesn’t even come close to being a setback. First, it will be two years from now before a decision is made by the 2nd Circuit, if appealed. The Torres decision is the law until then – at least in the 2nd Circuit. Second, even though the 2nd Circuit said Torres was wrong… https://t.co/GzW31D9edQ
— John E Deaton (@JohnEDeaton1) July 22, 2023
Deaton’s explanation suggests that the appeal decision could span two years, during which summary judgment will remain the governing law. At this time, it remains unclear when SEC staff will initiate the appeals process in response to the ruling.
“A call doesn’t even come close to being a setback. Don’t let anyone underestimate the importance of this victory for XRP, XRPHolders and Ripple.
In response to the ongoing discussion about the SEC’s authority over tokens, Stuart Alderoty, Ripple’s chief legal officer, said that a securities agency’s jurisdiction is limited to securities. If a token is not classified as a security, the SEC should have no role in regulating it. Claiming jurisdiction where there is none is just a political power move, which ultimately benefits no one and harms everyone involved.
A securities agency has jurisdiction only over securities. No security, no role for the SEC.
Claiming to have jurisdiction when there is none is simply a political power game. It doesn’t help anyone; it hurts everyone. https://t.co/OhNSaDuJ26
— Stuart Alderoty (@s_alderoty) July 22, 2023
Related: Terra’s interim CEO says any ‘small progress’ is derailed by accusations
Judge Torres’ ruling clarified that only the retail sale of XRP is not classified as a securities asset, which may provide some flexibility for the agency to explore settlement terms regarding the institutional sale of XRP. This could lead to discussions and potential negotiations between the parties concerned as they consider the regulatory status of XRP in terms of institutional sales.
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