Cryptocurrency NewsPro-XRP Lawyer John Deaton Explains Potential Implications of SEC Appeal on XRP...

Pro-XRP Lawyer John Deaton Explains Potential Implications of SEC Appeal on XRP Holders

Pro-XRP lawyer John Deaton discussed the potential implications of an appeal by the United States Securities and Exchange Commission (SEC) against the recent ruling on XRP. Despite speculations about the impact of such an appeal on the crypto market, Deaton made it clear that XRP holders need not worry as the appeal process is unlikely to have a significant effect on them.

Following the judge’s ruling that XRP tokens sold on retail digital asset exchanges are not classified as securities, a new question arises about the legal consequences if the SEC decides to challenge the decision. Deaton, representing more than 75,000 XRP token-holders, delved into the various scenarios and complexities involved in enforcing the summary judgment.

On July 21, the SEC revealed its intention to seek a review of the ruling in the Ripple lawsuit after Terraform Labs CEO Do Kwon expressed his plan to use the verdict as a precedent to argue against classifying digital assets as securities.

Deaton’s explanation implies that the appeal process could take up to two years, during which the summary judgment will still hold. The exact timing of the SEC’s initiation of the appeal process remains uncertain.

In response to discussions about the SEC’s authority over tokens, Ripple’s chief legal officer, Stuart Alderoty, tweeted that the agency’s jurisdiction should be limited to securities. If a token is not considered a security, the SEC should not have a regulatory role over it. Attempting to claim jurisdiction where none exists is merely a political power move that benefits no one and harms all parties involved.

Judge Analisa Torres’ ruling on July 13 concluded that XRP tokens are not securities when sold on retail digital asset exchanges. However, it was found that Ripple violated securities laws when offering XRP to hedge funds and other institutional buyers.


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