Pro-XRP Lawyer Lowers Odds of SEC Appeal in Ripple Case

Bill Morgan, a lawyer supporting XRP, has changed his mind about how likely the SEC will appeal the Ripple case. He made this change after a recent SEC ruling against Kraken in the case. In that case, Judge William H. Orrick III sided with the SEC. His decision might affect how the SEC deals with the crypto industry.

Judge Orrick backed up the use of the Howey test for digital assets. This test helps decide if something is an investment contract under US law. The judge also agreed with how Judge Analisa Torres handled the Ripple case, and Judge Amy Berman Jackson dealt with the SEC’s case against Binance.

Morgan now thinks there’s a 55% chance the SEC will appeal, down from his earlier 80% estimate. He said, “I’m less sure the SEC will appeal the Ripple decision if they’re only thinking about legal reasons.” He pointed out that Judge Orrick liked how Judges Jackson and Torres looked at primary and secondary market trades differently.

Judges might change how they see crypto deals, especially using the Howey test. The third part of this test is critical. It asks if people expect to make money mainly from others’ work.

Morgan noted that Judges Orrick and Jackson’s positive comments about Judge Torres’ decision should calm critics like Charles Gasparino. Judge Orrick said Torres’ decision was “carefully limited to the facts of the case” and matched the Ninth Circuit’s Hocking case ruling.

XRP Ripple Case Review Could Deter SEC Appeal, Says Morgan

Morgan thinks this careful review of the Ripple case might make it difficult to apply the decision to other crypto cases, which could make the SEC less likely to appeal.

He added, “If there’s no clear legal mistake, and the SEC can easily say the Ripple case is different because it’s so specific, why appeal? Unless non-legal reasons are pushing them to appeal.”

People had mixed reactions when Morgan shared his thoughts on X (formerly Twitter). One user, Spirconi, needed clarification. Morgan explained he used to think there was an 80% chance of an appeal, but now he thinks it’s 55%.

Another user asked about the SEC’s silence on the Ripple ruling. Morgan guessed, “The SEC might not have decided yet.” Someone else asked if the SEC could decide until after the next US elections. Morgan said no, explaining there’s a 60-day deadline from when the final orders were made.

This update shows how complex the Ripple case is and how it might affect future crypto regulations. The crypto community is closely watching what the SEC will do next.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.