- SEC will not appeal the decision in XRP lawsuit if legal considerations are taken into account.
- Lawyer Bill Morgan highlighted that judges in Binance and Kraken lawsuits sided with Judge Torres.
- Crypto community on X called the SEC corrupt for filing the XRP lawsuit in the first place.
Digital assets lawyer Bill Morgan suggests the U.S. Securities and Exchange Commission (SEC) might forgo an appeal in the Ripple case if “merely legal considerations are influencing the decision.” This comes as Judge Orrick in the Kraken case aligned with Judge Jackson in the Binance case and Judge Torres in the XRP lawsuit.
In a post on social media platform X (formerly Twitter), Morgan explained that Judge Torres, Judge Jackson, and Judge Orrick all differentiate between primary and secondary market transactions. However, Judge Rakoff in the Terraform Labs case made no such distinction, causing an uproar in the community. Many commentators found Rakoff’s ruling inconsistent which reflected poorly on the reasoning of Judge Torres in the XRP lawsuit.
Judge Torres ruled in the XRP lawsuit that the cryptocurrency was not a security when sold to retail investors but not in the case of institutional investors. Judges in the Binance and Kraken lawsuit have favored Torres’ ruling which “should assuage doubts about the correctness of her decision,” said Morgan while adding :
What is important to me is that if there is no obvious legal error and the SEC can easily distinguish the Ripple case because it is narrowly confined to its own facts why appeal it at all, unless of course there are non legal considerations influencing the decision to appeal.
The digital asset community was swift to weigh in on Morgan’s statements. One X user said that the first lawsuit filed by the SEC in 2020 against Ripple and its executives was a move to “slow Ripple down.” The user continued to call the SEC corrupt and added that the agency doesn’t care about the law or the US courts.
Another X user pointed out that both the general public and the legal community have concluded that there are no legal errors on which the SEC can base an appeal. Therefore, if the regulator does appeal the Ripple lawsuit, it’s possible that non-legal considerations are at play.
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