- Pro-XRP lawyer says there is no certainty that the earlier decision of Judge Torres wouldn’t be overruled.
- In the recent appeal, the SEC claims that the programmatic sale of XRP qualifies as a security.
- Ripple Labs has till September 1 to respond to the SEC appeal filing.
Pro-XRP lawyer Bill Morgan says there is no certainty what the outcome of the U.S Securities and Exchange Commission appeal against Judge Torres’s Ruling in the Ripple Case will be. In a post on X, the attorney stated that if the earlier decision of Judge Torres is overruled, then she might have to decide whether the programmatic sale of XRP is a security.
The SEC vs Ripple case, which started over 2 years ago, culminated in a partial victory for Ripple last month. The initial victory, which saw Judge Torres rule that XRP was not a security, was celebrated as a landmark victory in the crypto community. However, Ripple Labs is about to see the commencement of another legal tussle with the SEC’s latest appeal, as revealed by a recent filing. The news has since stirred up mixed reactions within the XRP community regarding the chance of another victory.
In her initial decision, Judge Torres ruled that XRP is not a security unless sold to institutional buyers. Even though Ripple argued that fungibility shows common interest, the Judge accepted the SEC’s argument that fungibility shows a common enterprise. As a result, only the sales of XRP to institutional investors qualified as securities and not sales to ordinary customers.
However, according to Morgan, that might change if Judge Torres decision about programmatic sales not satisfying the third prong is overruled. In effect, she will then have to decide whether there is a common enterprise between Ripple and programmatic buyers of XRP. Morgan added that there is no certainty that she will find that fungibility means only that there is a common interest and not a common enterprise.
If she decides that there is a common enterprise, the decision could be a setback for Ripple Labs. However, Ripple Labs executives have expressed their confidence in a victory at appeal.
Ripple Labs is expected to respond to the appeal filing by September 1. Likewise, the SEC is to, before September 8, address any subsequent response submitted by Ripple. Even though XRP rallied following the victory, the token has since shed most of its gain.
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