The U.S. Securities and Exchange Commission has been criticizing Ripple for years. $0.590686 and are arguing in courtrooms about whether XRP Coin is a security or not. The latest Advocate comment, quoted by Fox Business reporter Eleanor Terrett, includes Deaton’s views on the appeal.
SEC’s Reaction to the Decision
Attorney John Deaton said the SEC was unhappy with Judge Torres’ decision not to classify secondary sales of XRP as securities. This decision provided relief for Ripple after their long legal struggle and marked the month of July.
Attorney John Deaton, the Republican candidate for the Massachusetts U.S. Senate election, said the SEC’s objection would be a waste of public money and they would lose again. Deaton believes the appeals court will not overturn Judge Torres’ decision.
SEC and Ripple Case
Another expert, Jeremy Hogan, said that rather than considering appealing the decision, the SEC should consider whether such an appeal is consistent with its mission of protecting investors and building capital. If the SEC appeals the case, there could be significant impacts on XRP and the overall crypto industry. Of course, we will see these effects depending on the outcome of the appeal. Since there is currently time for the October 7 appeal deadline, the SEC has not filed an appeal in order to use the time efficiently.
Deaton noted that Judge Torres’ decision was made based on the third test criterion and that the SEC failed in its arguments based on expert testimony regarding XRP holders. He also stated that all the criteria of the Howey test were not met in the Ripple case and underlined that the decision could not be overturned in case of appeal.
“I believe that the appellate court will not find Judge Torres to have erred in applying the third criterion. “Judge Torres based the decision on very concrete facts.” –John Deaton
Stating that the deadline for the objection process to the SEC’s July 2023 decision is October 7, the lawyer does not believe that the institution has much chance of overturning this decision.
In summary, lawyers say the SEC should accept the decision instead of going through an appeals process that would waste its resources. Since the judge makes the decision based on concrete evidence, the chances of getting results from the appeal are low.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
