- The lawyer said the ruling will be legally binding for at least two years.
- The application of the third requirement of the Howey test has been discussed.
The turning point in the legal battle between Ripple [XRP] and the US Securities and Exchange Commission (SEC) have set a precedent regarding the regulation of cryptos in the US
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But the battle seems far from over. The SEC has publicly expressed its dissatisfaction with some parts of the ruling and has expressed its intention to have them reviewed, according to a recent Bloomberg report.
Pro-Ripple attorney John E Deaton continued the story war, ruling out any near-term threat to XRP, even if the watchdog goes ahead with the appeal.
XRP proponent rules out assessment threat
Deaton increased Twitter to state that even if the appeal is filed now, it will take at least two years for a second-level court to make a decision. Until then, the decision of the Court’s Judge Analisa Torres is legally binding on all stakeholders.
The lawyer went on to highlight another intriguing scenario. He argued that even if the judge in a higher court points to flaws in Torres’ application of the third criterion of the Howey Test, it still does not guarantee a victory for the SEC.
In that case, Judge Torres could apply the other two criteria to the case, which Deaton says will be more difficult to fulfill.
Bone of twist
The Howey Test is a legal test used to determine whether a transaction can be considered a security. According to the test, a transaction is a security if it: – An investment of money, in a common venture, with the expectation of profit, obtained from the efforts of others.
The recent verdict ruled that selling XRP to the general public should not be considered a certainty, as private buyers could not have been aware of Ripple’s intentions, thus failing the third factor of the Howey test.
How much are 1,10,100 XRPs worth today
However, this part of the statement has become the subject of debate. Former SEC official John Reed Stark disputed the assumption, calling it “not just patronizing, but just downright offensive.”
Since the ruling, XRP’s fortunes have skyrocketed. The token was the fourth-largest crypto by market cap at the time of writing, having pumped 55% since the verdict was made public, data from CoinMarketCap revealed.
