Could the SEC Appeal the Ripple Victory? XRP Expert Weighs In

Bill Morgan pointed out today that for the SEC to successfully appeal the ruling in Ripple’s favor, they would need to identify a clear legal error in Judge Torres’ reasoning and analysis. However, Morgan believes this may be difficult given the judges in other related cases have supported Torres’ approach.

Specifically, Morgan notes that Judge Torres confined her ruling in the Ripple case to the specific facts and circumstances presented. She did not issue an overly broad judgment that could be easily disputed in other situations.

So Morgan is essentially saying that from a purely legal standpoint, it may be challenging for the SEC to convince an appeals court that Torres was wrong in her interpretation and application of securities law to Ripple.

The quote underscores that “unless of course there are non legal considerations influencing the decision to appeal.” By this, Morgan means that strategic, political or other outside factors, rather than the substance of the actual law, could motivate the SEC to pursue an appeal even if the legal merits do not strongly favor their position.

In other words, Morgan believes an appeal would be difficult to win strictly based on legal errors, so the SEC may only appeal if they have additional non-legal motivations for prolonging the case through the appeals process.

Morgan also points to similar rulings in other cases like SEC v. Kraken where Judge Orrick supported Judge Torres’ distinction between primary and secondary markets. This mirrors Judge Torres’ rationale in dismissing the SEC’s claims against Ripple.

Since Judge Orrick praised Judge Torres’ analysis, particularly regarding the third prong of the Howey test, Morgan thinks it would be difficult for the SEC to successfully argue the ruling was legally incorrect on appeal.

However, he acknowledges the SEC’s decision may consider more than just legal issues. Strategic and political motivations could influence whether or not an appeal is pursued before the 60-day window closes in early October.

Read also: How Many Ripple (XRP) Coins Do You Need to Be a Millionaire? Is $100 Per Token Possible?

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