Connect with us
Active Currencies 14915
Market Cap $2,526,724,471,034.10
Bitcoin Share 51.80%
24h Market Cap Change $-0.25

Ripple: Crypto lawyer rules out near-term impacts from SEC appeal

2min Read

Pro-Ripple lawyer rejected any threat to XRP in the near-term even if the SEC goes ahead with the appeal in the high-stakes legal battle.

SEC appeal won't impact Ripple in the near-term, lawyer says

Share this article

  • The attorney said that the ruling will be legally binding for at least two years.
  • The application of the third requirement of the Howey test has been debated.

The watershed verdict in the high-stakes legal battle between Ripple [XRP] and U.S. Securities and Exchange Commission (SEC) set a precedent regarding the regulation of cryptos in U.S.


Is your portfolio green? Check out the XRP Profit Calculator


But the battle seems far from over. The SEC publicly expressed its displeasure regarding some portions of the ruling and signaled intent to have them reviewed, according to a recent Bloomberg report.

Continuing with the war of narratives, Pro-Ripple lawyer John E Deaton ruled out any threat to XRP in the near-term even if the watchdog goes ahead with the appeal.

XRP advocate rules out review threat

Deaton took to Twitter to state that even if the appeal is made now, it will take at least two years for a second-level court to make a decision. Until then, District Court Judge Analisa Torres’ decision will be legally binding on all stakeholders.

The attorney went on to highlight another intriguing scenario. He claimed that even if the judge in a higher court points out flaws in Torres’ application of the third criterion of Howey Test, it still won’t guarantee a win for the SEC.

In such an event, Judge Torres could apply the other two criterion to the case which, in Deaton’s view, will be more difficult to satisfy.

Bone of contention

The Howey test is a legal test used to determine if a transaction could be considered a security. According to the test, a transaction is a security if it is – An investment of money, in a common enterprise, with the expectation of profit, to be derived from the efforts of others.

The recent judgement ruled that sale of XRP to general public was not to be considered as a security as retail buyers could not have known about Ripple’s intentions, thus failing to meet the third factor of the Howey Test.


How many are 1,10,100 XRPs worth today


However, this part of the ruling has become a subject of debate. Former SEC official John Reed Stark disputed the assumption, calling it “not only patronizing but just plain insulting”

Since the ruling, XRP’s fortunes have swelled. The token was the fourth-largest crypto by market cap at the time of writing, having pumped 55% since the judgement was made public, data from CoinMarketCap revealed.

Share

Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.