The XRP lawsuit’s most recent developments involve the probable prospect of the U.S. Securities and Exchange Commission (SEC) filing an appeal against Judge Analisa Torres’ Summary Judgment. As the crypto market anticipates the potential results, it is essential to explore the probable scenarios Ripple might confront if the SEC acquire approval from the appeal process. During this period, the XRP price fluctuated slightly having gone through a reduction after the Summary Judgment, when the price rallied up. Gary Gensler, the SEC’s chair, raised queries regarding the ruling at a recent discussion on the truth, and underlined the risks indispensable with the crypto market. American businessman Mark Cuban strenuously challenged Gary’s administration of the term “investors” to the token holders. Cuban said “Gary Gensler is inefficiently implicating token holders as investors. He is conscious that this is wrong but it works.” John Deaton, lawyer for the token holders, expressed his doubt on the appeal conducted by the SEC and assumed a stance that Judge Torres’ could depend on the first two essentials of the Howey Test. Thus logically considering that the programmatic sale of XRP tokens does not result in any securities transaction.
Deaton also articulated his speculations about the effects of the appeals, “to assess if any transactions qualify as securitized investments, the Howey Test is typically used. It takes two main components into account: an individual’s investment into common enterprises and the prospect of any profit coming solely from the rear or officers of the promoter. If these pre-requisites are fulfilled, the exchange is called as an investment agreement exclusively.“
Conclusively, as the U.S. SEC filing an appeal hangs over Judge Analisa Torres’s Summary Judgment, miscellaneous results can be expected. The decision rooting in from these hearings will significantly affect the future of XRP tokens with the United States jurisdiction. Ripple and XRP holders will thread this (legal) battle cautiously with eagerness.
