Attorney Dispels SEC Impact on XRP Holders Amid SEC Appeal

In response to rumors that a potential appeal by the United States Securities and Exchange Commission (SEC) could harm the cryptocurrency market, Pro-XRP attorney John Deaton has stated that even if the agency were to file an appeal, it would not have a significant impact on XRP holders.

As a result of the judge’s ruling that the programmatic sale of XRP tokens through exchanges does not classify them as securities, a new issue arises regarding the potential legal implications if the SEC chooses to appeal the ruling.

Deaton, who represents over 75,000 XRP token holders, elaborated on the potential scenarios and complexities involved in enforcing the summary judgment.

The SEC announced on July 21 in a filing regarding the case against Terraform Labs CEO Do Kwon that it intends to request a review of the Ripple lawsuit’s verdict.

This decision followed Kwon’s announcement that he would use the XRP lawsuit verdict as a precedent to contend that digital assets should not be classified as securities.

According to Deaton’s explanation, the appeal decision could take more than two years, during which the summary judgment will continue to apply.

“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.”

When the SEC will initiate the appeals procedure in response to the ruling is still unknown.

In response to the ongoing discussion regarding the SEC’s authority over tokens, Ripple’s chief legal officer tweeted that the agency’s jurisdiction is limited to securities.

He stated that if a token is not classified as a security, then the SEC should not regulate it.

Claiming jurisdiction where none exists is nothing more than a political power play that ultimately benefits no one and is detrimental to all parties involved.

Judge Analisa Torres ruled on July 13 that XRP tokens sold on retail digital asset exchanges are not securities.

Ripple was found to have violated securities laws when it sold XRP to hedge funds and other institutional buyers, so the decision was not wholly favorable to the company.