- Ripple’s lawyer reassured the community that the SEC won’t challenge XRP’s core non-security status on appeal.
- The SEC’s appeal will likely focus on Ripple’s institutional XRP sales, not XRP’s overall status.
- Obiter dictum comments aren’t binding but could be referenced in the SEC’s future legal arguments.
Pro-XRP lawyer Bill Morgan has addressed concerns about the SEC potentially using obiter dictum to challenge XRP’s non-security status. He assured the community that while obiter isn’t set in stone on appeal, the SEC has signaled its focus remains on Ripple’s institutional sales, not XRP’s core status.
Ripple vs. SEC: Legal Battle and Potential Appeal Strategy
Morgan’s comments come in the wake of the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Ripple’s legal team has dispelled speculation on the SEC’s potential appeal strategy to rely on obiter dictum—legal comments not central to the court’s ruling. These have sparked concerns that the regulator may attempt to challenge the status of XRP as a non-security on appeal.
Read also: Coinbase Wins Partial Victory in SEC Case, Gains Access to Key Documents
Ripple had secured a partial victory in having the fine imposed reduced significantly and the court ruled XRP, when sold on secondary markets, is not considered a security. Although non-binding, such comments could potentially be cited in future legal arguments or appeals.
SEC’s Focus on Institutional XRP Sales
Ripple’s legal team clarified that while obiter can be revisited on appeal, it’s unlikely to be the centerpiece of the SEC’s strategy. They pointed out that the SEC has filed an interlocutory appeal, targeting specific aspects of the ruling related to Ripple’s institutional XRP sales rather than the core finding that XRP itself is not a security.
Despite these reassurances, some market participants remain cautious of unexpected legal developments that could influence XRP’s regulatory status.
Read also: Ripple’s RLUSD: Institutions-Only at Launch, CTO Confirms
As this case progresses, the crypto community will closely observe any changes in the SEC’s approach, particularly regarding XRP’s status as a non-security, which holds significant weight in the legal and regulatory landscape.
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