Pro-XRP attorney John Deaton has expressed confidence that an SEC appeal, if filed, would not significantly impact XRP. After a judge ruled that XRP tokens sold through exchanges are not securities, there have been speculations about the potential consequences of an SEC appeal. Deaton, representing over 75,000 XRP token holders, discussed the complexities of enforcing summary judgment and suggested that the appeal decision could extend beyond two years, during which time the summary judgment would still be applicable. The exact timing of the SEC's appeal process remains uncertain.
On July 21, the SEC revealed its intention to request a review of decisions in the Ripple lawsuit following Terraform Labs CEO Do Kwon's statement of using the XRP lawsuit judgment as a precedent in arguing against classifying the digital asset as a security . Despite the appeal announcement, Deaton emphasized that the victory for XRP, XRPHolders, and Ripple should not be underestimated.
Amid ongoing discussions about the SEC's jurisdiction over tokens, Ripple Chief Legal Officer Stuart Alderoty tweeted that the agency's authority is limited to securities. He argued that if tokens are not classified as securities, the SEC should not have a role in the irregulation. Claiming jurisdiction where it doesn't exist is a political power move that ultimately benefits no one and hurts everyone involved.
Judge Analisa Torres' ruling on July 13 clarified that XRP tokens are not securities when sold on retail digital asset exchanges. However, the ruling also found Ripple to have violated securities laws in the past by offering XRP to hedge funds and institutional buyers .
