The post What Experts Say About Potential SEC Appeal appeared on BitcoinEthereumNews.com.

The US Securities and Exchange Commission (SEC) is likely to appeal against the court’s July 13 decision in the Ripple case. As it happened, Federal Court Judge Analisa Torres determined that the XRP token is only a security when sold to institutional investors. Experts Weigh In: Will SEC Appeal Ripple XRP Ruling by October 7? Fox Business reporter Eleanor Terrett, citing a former SEC lawyer, said the securities regulator could appeal Judge Torres’s ruling, which had granted Ripple Labs a partial victory. “Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed,” read the report. BeInCrypto recently reported that the SEC dropped claims against Ripple executives Chris Larsen and Brad Garlinghouse. This sparked speculation of an appeal focused on programmatic sales. Several legal experts have commented on this speculation, including XRP advocate and Massachusetts Senate candidate John Deaton. John Deaton Deaton says Judge Torres’s ruling was very fact-specific, relying on the submitted XRP holder affidavits. Further, the SEC failed to establish a “common enterprise.” This is the second condition of the Howey Test, and appealing the ruling would not make sense.  “An appellate court could say, just as Judge Torres acknowledged, there could be a scenario where secondary sales could qualify as investment contracts because the facts meet all the Howey factors. But in the Ripple XRP case, the facts presented just don’t satisfy it. Thus, the case gets affirmed on appeal but it doesn’t prevent the SEC from arguing secondary sales constitute investment contracts in other cases,” Deaton noted. Read more: Everything You Need To Know About Ripple vs. SEC The Howey Test outlines four criteria that must be met for an investment contract to qualify as a security. First, there must be an investment of money. Second, the…

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Filed under: News - @ September 27, 2024 8:28 am