XRP Lawsuit News: Deaton Says SEC Appeal Likely to Be Dismissed, Reveals What’s Next
The post XRP Lawsuit News: Deaton Says SEC Appeal Likely to Be Dismissed, Reveals What’s Next appeared first on Coinpedia Fintech News
As the legal battle between Ripple and the SEC continues, many investors are eagerly awaiting the outcome. Legal expert John Deaton recently weighed in, offering details into what could happen next, especially in light of the recent developments surrounding the case.
No Strong Reason for SEC to Appeal
On the Good Morning Crypto Show, Deaton explains that there’s really no strong reason for the SEC to appeal the case. While they may feel disappointed by the current outcome, especially with over 75,000 XRP holders joining the case in support of Ripple, Deaton believes the SEC’s appeal may not hold much weight. Judge Torres already ruled that the SEC failed to satisfy certain criteria, which means even if the case were to go to appeal, it would likely return to Judge Torres with a similar result. Essentially, Ripple would win again.
Furthermore, Deaton believes that if the case were to go to the Second Circuit Court, it would likely rule in favor of Ripple, reaffirming Judge Torres’ earlier decision. And if the SEC somehow won, the case could eventually make its way to the Supreme Court—resulting in more legal battles and delays.
Positive News for Ripple Investors: SEC Could Dismiss the Case
However, there is some positive news for Ripple investors. Deaton points out that the current acting director of the SEC, along with Paul Atkins, who has been critical of the agency’s stance, could be key in pushing for the dismissal of the case. With a majority vote of three out of five commissioners, the SEC could decide to drop the case entirely, considering the growing sentiment that XRP serves a legitimate purpose in the market, much like other major cryptocurrencies.
For the unversed, the SEC has appealed a federal court’s decision. On January 15, the SEC filed its arguments to the Second Circuit Appeals Court, claiming the New York District Court was wrong to rule that XRP sales to retail investors were not unregistered securities. The SEC wants the appeals court to reverse the July 2023 ruling by Judge Analisa Torres, which excluded XRP sales to retail investors from being classified as unregistered securities.
