Amid speculations that a possible appeal by the US SEC could have a negative impact on the crypto market, pro-XRP advocate, Attorney John Deaton has made it clear that even in the event of an appeal by the agency, it will not significantly affect XRP holders.

Following a judge’s ruling that programmatic sales of XRP tokens through exchanges do not classify them as securities, a new question emerges regarding the potential legal implications if the SEC decides to appeal this ruling. Attorney Deaton, who represents over 75,000 XRP token holders, detailed Possible scenarios and complications of how summary judgment will be implemented.

The US SEC, in its filing regarding the case of Terraform Labs CEO Do Kwon on July 21, said that it plans to request a review of the decision taken in the Ripple lawsuit. The decision comes after Kwon expressed his intention to use the XRP lawsuit ruling as a precedent to argue that digital assets should not be classified as securities.

There is not even close to a blow on any appeal. First, if appealed, it will take two years from now for the Second Circuit to issue the decision. The Torres decision is the law until then – at least in the Second Circuit. Second, even though the 2nd Circuit said Torres was wrong… https://t.co/GzW31D9edQ

— John E Deaton (@johndeaton1) 22 July 2023

Deaton’s clarification suggests that the appeal decision may extend to two years, during which the summary judgment will remain the governing law. As of now, it remains uncertain when SEC staff will begin the appeals process in response to the decision.

“An appeal is not even close to a setback. No one should underestimate how important this win is for XRP and XRPholders and Ripple.”

Responding to the ongoing debate about the SEC’s jurisdiction over tokens, Ripple’s Chief Legal Officer Stuart Alderotti said that the securities agency’s jurisdiction is limited to securities. If a token is not classified as a security, the SEC should have no role in regulating it. Claiming jurisdiction where none exists is merely a political power ploy that ultimately benefits no one and harms everyone involved.

A securities agency only has jurisdiction over securities. No security, no role for the SEC.

Pretending to have jurisdiction when there is none is just a political power play. It doesn’t help anyone; It hurts everyone. https://t.co/OhNSaDuJ26

— Stuart Alderoty (@s_alderoty) 22 July 2023

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Judge Torres’ ruling clarified that only retail sales of XRP are not classified as securities assets, which may provide the agency with some flexibility to explore settlement terms regarding institutional sales of XRP. This could potentially lead to discussions and negotiations between the parties involved as they examine the regulatory status of XRP in terms of institutional sales.

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