Crypto News: Ripple executives on Saturday clarified about the U.S. Securities and Exchange Commission’s jurisdiction on XRP tokens, in the wake of news that the federal regulatory agency is likely to appeal the Summary Judgment delivered by Judge Analisa Torres on July 13, 2023.
Will SEC’s Appeal Impact XRP?
With the judge ruling that the programmatic sale of XRP tokens via exchanges does not qualify them as securities, the question now arises as to what would be the legal standing if the SEC does appeal against the ruling. Attorney John Deaton, who represents over 75,000 XRP token holders, explained the ifs and buts of how the Summary Judgment would come into force.
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On Friday, the US SEC mentioned in its filing in the Terraform Labs CEO Do Kwon’s case that it intends to seek a review of the decision in the Ripple lawsuit. This came after Kwon showed intent to use the XRP lawsuit verdict as a precedent for digital assets not being treated as securities.
US SEC Appeal Not A Setback
Amid speculation that a possible appeal by the US SEC would be a setback for the crypto market, Attorney Deaton clarified that even if the agency does appeal, it would not be close to being a setback for XRP holders.
An appeal is not even close to be a setback. First, it will be two years from now before a decision is issued by the 2nd Circuit, if it’s appealed. The Torres Decision is the law until then – at least in the 2nd Circuit. Second, even if the 2nd Circuit said Torres was wrong… https://t.co/GzW31D9edQ
— John E Deaton (@JohnEDeaton1) July 22, 2023
He explained that a decision on the appeal could take as long as two years and in the mean time, the Summary Judgment will prevail as the law. Meanwhile, it remains to be seen when the SEC staff will initiate proceedings for request for appeal against the decision.
“An appeal is not even close to be a setback. Don’t let anyone underestimate how significant this win is for XRP and XRPHolders and Ripple.”
Reacting to the debate about the SEC’s oversight on the tokens, Stuart Alderoty, the chief legal officer at Ripple, said,
A securities agency only has jurisdiction over securities. No security, no role for the SEC.
Pretending to have jurisdiction when there is none, is simply a political power play. It helps no one; it hurts everyone. https://t.co/OhNSaDuJ26
— Stuart Alderoty (@s_alderoty) July 22, 2023
Earlier, CoinGape reported that the US SEC has no other option left but to go for an appeal. It is the part which concerns the institutional sale of XRP that may have some leeway for the agency to explore terms of settlement, considering judge Torres ruled that only the retail sale of XRP amounts to not being securities assets.
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