The U.S. Securities and Exchange Commission (SEC) is gearing up to contest Judge Analisa Torres’ summary judgment on XRP concerning the Ripple case. John Deaton, a lawyer supporting 75,000 XRP holders, and other legal experts are scrutinizing the chances and implications of this potential appeal.
Why is the SEC Seeking an Appeal?
The SEC’s intention to appeal has gained momentum recently. A former agency attorney indicated to Fox Business that the SEC is likely to question Judge Torres’ July 2023 decision. Deaton, who provides pro bono support for XRP holders, emphasized the judicial criticism towards the SEC’s legal adherence.
What Do Legal Experts Say?
Deaton argues that the appeals court is unlikely to find fault with Judge Torres’ application of the law, emphasizing the specificity of the facts in the decision. He claims that even if an error is identified, the case would revert to Judge Torres, where the SEC might face another defeat due to insufficient evidence of a ‘joint venture.’
Legal opinions reveal several points:
- Judge Torres’ ruling relies on detailed factual analysis.
- An appeals court may not reverse the judgment based on the third criterion application.
- The SEC’s repeated failure to provide expert testimony weakens its position.
- If reevaluated, the SEC risks another unfavorable verdict at the district level.
Fred Rispoli aligns with Deaton, noting that altering Torres’ decision could be daunting for the SEC. He highlights that the outcome hinges on the disposition of the judges randomly selected to review the case. A favorable judgment for Ripple would allow them to argue against all secondary sales being classified as investment contracts.
XRP’s market activity is on an upward trend, with a 2% rise in the past 24 hours, trading at $0.602 and peaking at $0.610. This rise is accompanied by a 21% surge in trading volume, reflecting increased investor engagement. Price forecasts point toward a potential target of $2 for XRP.
The legal proceedings are pivotal for XRP’s market trajectory and the SEC’s regulatory stance. Investors and analysts are closely observing how these developments may influence cryptocurrency valuations and regulatory frameworks.
