The SEC is ‘possibly’ preparing to appeal a judge’s decision regarding the XRP lawsuit, which favored Ripple. A former SEC attorney suggested that the agency is likely to challenge the July 2023 ruling by Judge Torres, but experts argue that the chances of the appeals court overturning the decision are slim.
Marc Fagel, a former SEC lawyer, argued that the court’s reasoning implies a reasonable investor should be indifferent to XRP’s connection to Ripple. He suggested that the court seems to underestimate crypto investors. Fagel noted the evidence to the contrary, particularly the 70,000 XRP investors represented by John Deaton, who appeared unhappy with the case despite being expected to be neutral.
He wrote, “I interpret the evidence to the contrary–not least of which being the fact that John Deaton submitted some 70,000 XRP investors who seemed quite unhappy with the case, when they should’ve been absolutely agnostic”
In response, a user questioned whether it was accurate to claim that those 70,000 investors were unaware of Ripple and its efforts, pointing out that a quick search on social media reveals a different perspective. The user also asked if the signatories could be accused of perjury for signing the petition, speculating that, since this wasn’t a criminal trial, it wouldn’t apply.
(Providing false testimony in any case, civil or criminal, could constitute perjury; but that’s not what I’m saying happened here.)
— Marc Fagel (@Marc_Fagel) September 29, 2024
Fagel replied that while providing false testimony can be considered perjury in any case, civil or criminal, he was not suggesting that had occurred here.
Conclusion:
Legal experts believe that even if an error is found, the case may return to Judge Torres, where the SEC could face another loss due to insufficient evidence. John Deaton and others said that the SEC’s position is weakened by its failure to provide relevant expert testimony. As for XRP price, market activity shows an increase in XRP trading, with the cryptocurrency reaching around 60 cents and a notable rise in trading volume, indicating growing investor interest.
