Ripple’s Legal Victory Likely to Stand in SEC Appeal, According to Legal Analyst
John Deaton, a lawyer supporting XRP holders in the Ripple lawsuit, remains unfazed by the possibility of the U.S. Securities and Exchange Commission (SEC) appealing the outcome.
Judge Analisa Torres previously ruled that Ripple’s programmatic sales of XRP did not constitute security offerings, contrary to the SEC’s claim. In response, the SEC is considering avenues for further review, hinting at a potential appeal. Deaton, however, believes that even if appealed, it could take around two years for a decision from the 2nd Circuit. Until then, Torres’ decision stands as the law within the 2nd Circuit. Furthermore, Deaton explains that an appellate decision might not automatically favor the SEC on the programmatic sales aspect. He anticipates Torres would apply the remaining factors and potentially reach the same conclusion.
Deaton acknowledges that Torres’ decision is not binding in the Southern District of New York, where another district judge could hold a different opinion. Nonetheless, he believes a fellow judge within the 2nd Circuit would be hesitant to contradict Judge Torres, given her citation of Judge Castel from the Telegram case, where it was made clear that the underlying asset itself is not considered a security in an investment contract analysis.
Clever Robot News Desk 26th July 2023
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