- The court dismisses the SEC’s appeal attempt, bolstering XRP’s legal position in the U.S.
- Attorney John Deaton asserts that XRP stands unique with definitive legal clarity.
XRP’s Unprecedented Legal Clarity
Following a significant legal maneuver, the U.S. court, under Judge Analisa Torres, has dismissed the SEC’s bid for an interlocutory appeal. This decision has further entrenched XRP’s unparalleled legal clarity as a non-security within the United States.
Attorney John Deaton, who advocates for numerous XRP enthusiasts amid the ongoing lawsuit, articulated the implications of the latest court ruling during a conversation with Digital Perspectives. Deaton clarified,
“XRP is the only one that has the pure legal status of not being a security.”
Deciphering the Court’s Decision
Let’s rewind to July 13, when the court first declared that XRP was not, in essence, a security. It differentiated between Ripple’s XRP transactions with institutions (deemed as investment contracts) and those with retail investors.
However, seeking a reevaluation, the SEC later proposed that this ruling posed foundational legal questions, thereby warranting diverse interpretations. The SEC’s attempt was met with resistance from Ripple, which opposed the appeal.
Yesterday’s crucial verdict saw the court reject the SEC’s arguments. It stated that the July decision did not raise the pure legal questions the SEC purported. This judgment not only endorses the initial ruling but also affirms XRP‘s unique position, aligning it with Bitcoin, in the realm of legal clarity in the U.S.
Delving into the Denial of SEC’s Appeal
Attorney Deaton delved deeper into the court’s rationale behind the denial of the SEC’s interlocutory appeal. He explained that such an appeal is usually sanctioned when the appellate court doesn’t examine the case facts. But in this instance, Judge Torres had indeed applied the relevant facts prior to rendering the judgment. Deaton further remarked,
“She [the judge] just takes the SEC to school and solidifies her first ruling so much even better.”
The Path Ahead
The SEC now faces a conundrum. Should they decide to challenge the court’s directive regarding Ripple‘s XRP sales and other distributions, they would need to bide their time until all aspects are settled.
The court has already earmarked April 23, 2024, for the SEC’s legal tussle against Ripple‘s leadership. The exact span of the trial remains undetermined.
Furthermore, the SEC has the potential to negotiate a compromise with Ripple during the imminent settlement discussions. It’s worth noting that the court has mandated both parties to engage in a direct settlement dialogue, in the presence of their respective counsels, before the definitive pretrial meetup slated for April 16, 2024.