• The US Securities and Exchange Commission (SEC) recently filed documents signaling the intention to appeal the court’s decision regarding XRP.
• John Deaton, a pro-XRP lawyer stated that this would not be a setback for Ripple, as Judge Torres’ decision will remain law until the appeal is heard and determined.
• The SEC’s hint of an appeal against Judge Analisa Torres‘ ruling was revealed in documents related to the agency’s case against Terraform Labs and its former CEO Do Kwon.

SEC’s Intent to Appeal Recent XRP Ruling

The US Securities and Exchange Commission (SEC) recently filed documents signaling the intention to appeal the court’s decision regarding XRP. This was revealed in documents related to the agency’s case against Terraform Labs and its former CEO Do Kwon.

John Deaton’s View on SEC’s Appeal

John Deaton, a pro-XRP lawyer stated that this would not be a setback for Ripple, as Judge Torres’ decision will remain law until the appeal is heard and determined. He noted that even if the 2nd Circuit said Torres was wrong regarding her application of the 3rd Howey factor, it does not necessarily mean that SEC wins on Programmatic sales (sales on exchanges). According to Deaton, Judge Torres could “still rule the same exact way” if the SEC appealed the case.

Impact of SEC’s Appeal on Crypto Market

XRP price retreated following news about SEC’s intent to appeal, though declines were widely spread across crypto markets. This could likely be bad news for Ripple according to a former SEC official but Deaton opined otherwise – an appeal is not even close to being a setback he noted.

Judge Torres‘ Decision Remains Law Until Appeal is Heard

Deaton further explained his view on how things could play out when an appeal is made by noting that it will be two years from now before a decision is issued by 2nd Circuit, if it is appealed; thus making Judge Torres‘ decision law until then – at least in 2nd Circuit. Even if another judge from District disagreed with her ruling, fellow judges in 2nd circuit would have difficulty contradicting Judge Torres as she cited Judge Castel from Telegram as evidence.

Conclusion

It remains unclear how far cryptocurrency markets will react once appeals are made but John Deaton has provided insights which suggest that such appeals may not be much of a setback for Ripple after all; rather decisions made by other judges may still result in similar rulings as those made by Judge Analisa Torres‘.

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