The U.S. Securities and Exchange Commission (SEC) is moving to appeal Judge Torres’ summary judgment on XRP in the Ripple 
$1 case. Pro-XRP attorney John Deaton and other legal experts are assessing the likelihood of the SEC’s appeal and its potential ramifications.
Intent to Appeal by the SEC
Recently, the possibility of the SEC filing an appeal has increased. A former SEC attorney stated to Fox Business journalist Eleanor Terrett that the agency would likely challenge Judge Analisa Torres’ July 2023 ruling.
Legal Critiques and Expert Opinions
John Deaton, working pro bono for 75,000 XRP holders, noted that judges have criticized the SEC’s adherence to the law. He pointed out that under Gary Gensler’s leadership, the SEC might still pursue an appeal, which could waste taxpayer money.
“I don’t believe an appeals court will rule that Judge Torres erred in applying the third criterion. Judge Torres’ decision was based on very specific facts. The SEC did not rely on any expert testimony regarding XRP holders (which was ultimately excluded), but the judge did.”
Deaton added that even if the Second Circuit judges determined that Judge Torres erred in applying the third criterion, the case would return to her, where the SEC would likely lose again, as the district court would conclude that the SEC failed to establish a ‘joint venture.’
The Only Way to Win the Case
Fred Rispoli agreed with Deaton, stating that it would be very challenging for the SEC to alter Torres’ ruling. Rispoli expressed that the SEC’s chances of winning depend on the preferences of three randomly selected judges reviewing the case.
“If the SEC selects three SEC-friendly judges (rare but possible), it could win.”
Rispoli and other attorneys anticipate a last-minute appeal from the SEC. If the SEC does not appeal, it would be a significant victory for Ripple and the XRP community, allowing them to argue that all secondary sales do not constitute an investment contract.
There is a rising trend in XRP’s price, which has seen a 2% increase in the last 24 hours, currently trading at $0.602. The recorded low and high levels are $0.585 and $0.610, respectively. Additionally, trading volume has surged by 21% in the last day, indicating growing investor interest. XRP price analysis suggests a target price of $2.
These developments in the legal process could significantly impact the future of XRP in the cryptocurrency market and the SEC’s regulatory role. Investors and market observers are closely monitoring how court decisions and potential appeals might affect the value of cryptocurrency assets.
