- The SEC Chair has largely disagreed with Judge Analisa Torres’ ruling in regard to XRP programmatic sales, which were deemed not securities.
- The XRP market has already been re-listed on almost all exchanges pointing to a dead end for the SEC in the appeal.
The XRP global community is undeniably convinced the recent summary judgment on the Ripple case was in their favor despite the institutional sale being deemed to have violated the SEC’s securities act. Moreover, Ripple’s On-Demand Liquidity (ODL) customers were compelled to fetch XRPs from the secondary market, which in return gives more value to the asset holders.
However, the SEC has not given up on trying to have jurisdiction over the cryptocurrency market, a move that has been disapproved by most crypto projects and users.
According to legal experts, the recent Ripple summary judgment ruling denied the SEC a chance to police the cryptocurrency market in regard to the retail market.
Legal Experts Take on SEC’s Wish to Appeal Ripple and XRP Ruling
According to the founder of crypto-Law.us, John E Deaton, who represented about 75k XRP holders in the SEC vs Ripple case, the SEC stands little chance of winning in the 2nd circuit with the current judgment by Judge Torres in place. This is after the SEC said in a fresh filing in regards to the Terraform Labs and Do Kwon’s case that the judge should reject the recent Ripple ruling as it subjects decades-old securities tests to subjective matter.
Notably, Terraform Labs and Do Kwon lawyers had previously filed a motion to have the charges against the clients dropped following the Ripple ruling that largely defined it as not a security.
XRP attorney Deaton said the SEC’s appeal against XRP would not be a major setback for Ripple. Even on appeal, it will take two years for a second-level court to reach a decision. In the interim, Judge Torres' ruling will remain in effect. https://t.co/1bEsu2pcc3 https://t.co/m5xH8ZvCoe
— Wu Blockchain (@WuBlockchain) July 23, 2023
Deaton argued that even if the 2nd Circuit goes ahead and rules that Judge Torres was wrong in regards to her application of the 3rd Howey factor, that does not mean the SEC wins on Programmatic sales, as the Judge would then apply the other two factors and could likely still rule the same way. As a result, Deaton concluded that the Judge in the second circuit will hardly nullify Torres’s decision, which further concludes that the SEC did not satisfy the common enterprise factor.
“I’m not suggesting that Judge Torres’ decision is binding within the SDNY. A fellow District Judge could disagree with her. But I think a fellow judge in the 2nd Circuit is going to be hard-pressed to disagree with Judge Torres, especially considering she cited Judge Castel from Telegram. After reading the Coinbase transcript, we can see it’s already playing out that way,” Deaton added.
Market Outlook
If the SEC moves ahead and files an appeal in the 2nd Circuit, legal experts believe a decision could take up to two years to be concluded. In two years, crypto market analysts forecast another bull rally will have materialized, which could push the XRP price action to new ATH. Consequently, Ripple will be having more resources to fight the SEC and more adoption in other parts of the world as crypto goes mainstream.
As a result, it is safe to say that the XRP market largely won and will be there in more years despite litigation by the SEC.
