A new phase has begun in the XRP case, with XRP advocates continuing to make their voices heard. Prominent XRP attorney John E. Deaton and other lawyers have reacted to the Securities and Exchange Commission’s (SEC) filing of a memorandum in support of its temporary appeal request. Will Judge Torres accept the SEC’s appeal? Attorneys Deaton, Bill Morgan, Marc Fagel, Fred Rispoli, and others have provided their interpretations of this possibility.
Current Status of the XRP-SEC Case
Attorney John E. Deaton argues that the SEC’s application to support its appeal is a “professional disgrace.” He stated that the SEC accuses Ripple of prolonging the case, wasting valuable judicial resources, and violating securities laws, but it is the SEC that has dragged out the case for years.
Deaton noted that if Judge Torres allows the SEC’s appeal, it would take 1.5-2 years for a decision to be reached by the court. Additionally, according to the renowned attorney, even if a hearing were held next year, a temporary appeal would not bring the case to a conclusion. As the SEC has failed to prove the third prong of the Howey Test, the judges will side with Ripple.
Is the SEC Making a Mistake?
According to the attorney, even if the appeal is accepted, the SEC will not be able to prove why XRP is a security. Additionally, it was stated that the SEC’s decision to drag Ripple executives Brad Garlinghouse and Chris Larsen into the case was a major mistake for the regulatory agency.
Attorney Bill Morgan said that the SEC is in trouble with this move and added:
Judge Torres did not conclude that investment contracts for offers and sales through cryptocurrency trading platforms could not be made without direct contact between the issuer and the investor. The SEC’s argument is completely illogical and manipulative.
Retired securities attorney Marc Fagel and attorney Fred Rispoli stated that the SEC presented strong arguments, but they believed that the probabilities were against the acceptance of the appeal request.
