Influential lawyer and legal representative of XRP holders, John Deaton, has unveiled crucial insights into the possibility of appealing the decision in the SEC's case against Ripple. He took to social media to clarify that an appeal does not necessarily mean a setback for crypto proponents.
Tomiwabold OlajideFirst of all, the expert explained that Judge Torres' recent ruling will remain in effect for at least two years if an appeal is filed, creating a significant buffer period. Deaton further discussed the impact of a potential appeal outcome. He expressed confidence in the strength of Judge Torres' decision, particularly regarding a legal factor known as the "common enterprise factor."
Let me more precise: 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…
— John E Deaton (@JohnEDeaton1) July 22, 2023Advertisement
The XRP holders' lawyer predicted that the chances of the Second Circuit overturning this part of the ruling are slim. This suggests that even if the SEC wins on certain sales made by Ripple on exchanges, it might not secure a full victory in the case.
Godfrey BenjaminThe possibility of an appeal by the SEC remains uncertain, with experts divided on the matter. Some argue that the commission is unlikely to succeed in an appeal. The others drew attention to a recent case where the SEC asked the court to overlook certain parts of the Ripple decision in a lawsuit against Terraform Labs, citing non-compliance with existing securities laws and Howey test principles. This move was interpreted by many as a signal of the SEC's inclination to pursue an appeal in the Ripple case.
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