This comes amid widespread rumors that an SEC appeal could have a negative influence on the cryptocurrency market. The judge’s finding that XRP should not be classified as a security raises issues about the possible legal ramifications that could follow if the SEC decides to appeal. Deaton provides additional information regarding the various possibilities and estimates that the decision regarding the appeal might take up to two years, with the Summary Judgment continuing to be in place during this time.
Following Terraform Labs CEO Do Kwon’s aim to use it as a precedent to argue against the classification of digital assets as securities, the United States Securities and Exchange Commission (SEC) has indicated in its filing that they intend to reconsider the decision that was made in the Ripple dispute. Despite the fact that the outcome of the appeal is still undetermined, Deaton’s positive comments highlight the significance of the victory for XRP and those who possess it.
Ripple’s chief legal officer, Stuart Alderoty, has weighed in on the SEC’s jurisdiction, saying that the agency’s authority is restricted to matters pertaining to securities. Tokens that are not securities, like XRP, should not be subject to regulation by the SEC. Claiming jurisdiction where it does not exist is nothing more than a political power play that will have negative repercussions for everyone concerned.
The decision made by Judge Torres makes it quite clear that the only type of sale of the token that does not involve securities is the retail sale. This opens the door for further debate on the regulatory status of institutional sales. Deaton is still optimistic, despite the possibility of an appeal, that it will not alter the beneficial conclusion for those who possess XRP and for Ripple.
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