To every observer following the ongoing legal battle between blockchain payments firm Ripple Labs Inc and the United States Securities and Exchange Commission (SEC), it will become glaring that there is a possibility of an appeal to the latest XRP ruling from Judge Analisa Torres.
XRP Ruling Appeal, Deaton’s Take
Should the market regulator choose to appeal the ruling after hinting that the retail aspect of the securities argument was wrong, crypto lawyer, John Deaton believes what the regulator will get at best is a remand.
Deaton shared his take to his Twitter followers, referencing Footnote 13 in the ruling. The footnote detailed how the court agreed that the common enterprise designation for the XRP sales was applicable only to institutional investors and that the definition extension did not apply to XRP sales on secondary markets.
READ FOOTNOTE 13 PEOPLE:
“The Court holds only that a common enterprise existed between Ripple and the Institutional Buyers. The Court does not reach the question of whether the common enterprise extends to encompass “other XP holders.” Defendants Garlinghouse and Larsen, the… https://t.co/uQO0q4M6sT pic.twitter.com/VwX4jyChSf
— John E Deaton (@JohnEDeaton1) July 22, 2023
Deaton said in the case of a successful appeal, “Judge Torres will likely decide the SEC failed to prove the common enterprise factor between Ripple and XRP holders in the secondary market.”
In this position, he believes Judge Torres will have the basis to arrive at this verdict seeing the markets regulator changed its theory about the common enterprise state of the XRP token over the past months since the case has been dragged on all along.
Deaton is not so convinced the markets regulator has a chance with the appeal, a position that echoes a related scenario he has been analyzing for a while now. He alongside other top experts in the industry believes the XRP ruling is more or less the game-changer in the lawsuit.
The Precedent is Set Already
The Ripple vs SEC case is arguably one of the most important cases in the industry today as the final outcome will play a crucial role in solidifying the defense of most firms currently being sued by the markets regulator including Coinbase and Binance.
Terraform Labs is already dwelling on the ruling to have its pending case dismissed. This situation models how many firms will leverage the XRP ruling, if allowed to stand, to boost their defenses in the case of subsequent crackdowns by the SEC.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
