Recent discussions about potential U.S. Securities and Exchange Commission (SEC) appeal against a ruling favoring XRP holders have sparked concerns among cryptocurrency enthusiasts. In this climate of apprehension, Attorney John Deaton, a known XRP advocate, has been quick to allay fears asserting, unexpectedly, the SEC appeal might not pose a significant threat to XRP holders.
The conversation spins off from a previous ruling where a judge opined that the sale of XRP tokens through exchanges did not make them securities. This ruling raises multifaceted questions about possible repercussions if the SEC opts to challenge the judgment. Deaton, whose clientele comprises over 75,000 XRP token holders, has provided detailed insight into potential scenarios and intricacies surrounding the enforcement of the summary judgment.
An appeal process could span two years or more, during which the summary judgment remains in force as the governing law. It is still unclear when the SEC might kickstart the appeal process in response to the ruling.
Nevertheless, Deaton remains optimistic. “An appeal is not even close to be a setback. Don’t let anyone underestimate how significant this win is for XRP and XRP holders and Ripple,” he stresses. His view, however, stands at odds with Stuart Alderoty, Ripple’s Chief Legal Officer, who suggests the SEC oversteps its boundaries when asserting jurisdiction over tokens that aren’t, in essence, securities.
The judge’s recent ruling clarifying that only the retail sale of XRP isn’t classified as a securities asset may grant the SEC some wiggle room to explore settlement terms concerning the institutional sale of XRP. This revelation might pave the way for dialogue and negotiation between the parties and provoke them to probe the regulatory status of XRP in terms of institutional sales.
The bottom line remains the SEC and its power to influence the cryptocurrency sphere. While single decisions don’t write the full story, they do contribute to the narrative, and in this case, the direction that regulations appear to favor or disfavor. Close scrutiny of legal proceedings surrounding XRP and the SEC’s actions, arguably, presents the cryptocurrency enthusiasts a clear look into the future regulatory landscape of the cryptocurrency world.
Source: Cointelegraph
