Hearing Outcome of Ripple vs. SEC Case
A few weeks ago, Ripple (XRP) emerged as the winner in its legal battle with the United States Securities and Exchange Commission (SEC). Judge Torres ruled that XRP tokens do not qualify as securities when traded on exchanges.
The next important point of discussion in this case is whether the SEC will file an appeal against the verdict, and if so, when. Ripple lawyer John Deaton believes it would not matter much for XRP holders whether the SEC appeals or not.
The Lengthy Process of an Appeal in the Ripple Case
Last week, there was much speculation about whether the SEC intends to appeal Judge Torres’ ruling. Ripple CEO Brad Garlinghouse indicated that the appeals process could potentially take an incredibly long time. Some even doubt whether the SEC would want to pursue an appeal at all.
Now, renowned Ripple advocate and lawyer John Deaton shares his thoughts on the matter. Friday saw SEC lawyers suggesting that the commission is indeed contemplating an appeal against the judge’s verdict. This does not come as a surprise.
In response, Deaton explains via Twitter the implications of this potential scenario and its impact on XRP holders.
Is XRP also Safe in an Appeal?
According to Deaton, who echoes Garlinghouse’s sentiments, an appeal could take a minimum of two years. Until a decision is reached in the potential appeal, Judge Torres’ ruling remains valid: XRP tokens do not qualify as securities when traded on crypto exchanges.
Even if the appeal does go forward, Deaton expresses minimal concern. He believes that the chances of a judge disagreeing with Judge Torres’ ruling are extremely slim.
Although the crypto community celebrated Ripple’s victory, the verdict is slightly more complicated. The judge also ruled that the past sale of XRP tokens to financial institutions was a violation. Ripple will have to address this issue as well. However, Garlinghouse considered it the least significant part of the lawsuit, calling the judge’s ruling a “complete victory” for Ripple.