Following the recent decision designating the programmatic selling of XRP tokens as non-securities, speculation arose on the potential impact of an SEC (Securities and Exchange Commission) influence on the cryptocurrency market. Even if the SEC decides to overturn the decision, renowned Professional-XRP lawyer John Deaton has assured XRP holders on Twitter that their effects shouldn’t be more likely to be significant.
What XRP Holders Need to Keep in Mind is as follows:
The recent judgement by Choose Torres, which determined that XRP’s sales through exchanges were not securities, has generated additional concerns regarding the legal repercussions if the SEC decides to contest the decision. John Deaton has made explicit the probable scenarios and challenges surrounding the implementation of the abstract judgement on behalf of more than 75,000 XRP token holders.
Discussions about the possibility of an SEC enchantment over the weekend made some traders uneasy, which led to a cautious mood in the market. However, John E. Deaton, a lawyer with Professional-XRP and an Amicus Curiae, provided a helpful assessment of the potential enchantment and its results. He highlighted that even if a request were to be granted, Choose Torres’ decision would continue to remain in effect for at least the next two years while an appeal is being considered. Therefore, the SEC would have limited success in challenging the decision.
According to Deaton, the Second Circuit, where the appeal might be filed, is not likely to find fault with the way in which Choose Torres applied the third Howey problem. As a result, it might not guarantee that the SEC would succeed in its fight against programmatic sales. Notably, Choose Torres would still have the power to consider the other two factors, and he or she might reach the same decision that the SEC didn’t satisfy the general business requirement, which is regarded as being more difficult to satisfy.
According to John Deaton’s assessment, the Choose Torres decision would continue to be in effect for the following two years, giving traders some stability and security. The Second Circuit may address the appeal, but it is unlikely that it will reverse Choose Torres’ ruling on the third Howey issue. This might be fantastic news for XRP owners. However, because the situation is legally complex, market participants should be vigilant as problems arise.