Pro-XRP Lawyer Lowers Odds For SEC Appeal Against Ripple To 55%

As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, I find myself closely following the developments in the Ripple case. My initial optimism regarding Ripple’s victory has been tempered by the SEC’s track record of persistence, but recent updates from pro-XRP lawyer Bill Morgan have given me reason to be cautiously optimistic.


Bill Morgan, an attorney favorable towards XRP, has revised his prediction about the possibility of a Securities and Exchange Commission (SEC) appeal in the Ripple case. This revision comes after Judge William H. Orrick III’s ruling in the SEC’s lawsuit against Kraken, a decision that could potentially impact the SEC’s future actions against the cryptocurrency sector.

In this situation, Judge Orrick agreed with the Securities and Exchange Commission (SEC), emphasizing that the Howey test, a key principle of U.S. securities law, should be applied to digital assets. Morgan noted that in his decision, Judge Orrick endorsed the stance previously taken by Judges Analisa Torres in the Ripple case and Amy Berman Jackson in the SEC’s lawsuit against Binance, indicating a consistent approach in these cases regarding digital assets.

Pro-XRP Lawyer Lowers Appeal Odds To 55%

Morgan expressed his doubt, stating, “I believe it’s less likely that the SEC will appeal the Ripple summary judgment ruling if legal factors alone are guiding their decision. I also highlighted in a recent post that Judge Orrick in the Kraken case favors the method used by Judges Jackson in the Binance case and Torres in the Ripple case, which separates primary and secondary market transactions.”

The commentary underscores a potential shift in the judicial understanding of crypto transactions, particularly how they are interpreted under the Howey test’s criteria for investment contracts. The third prong of the Howey test — whether an investment is made with an expectation of profits predominantly from the efforts of others — is crucial in these considerations.

He noted that “the favorable comments about aspects of Judge Torres’ reasoning in the Ripple summary judgment decision by Judges Orrick and Jackson should assuage doubts about the correctness of her decision raised by some critics such as Charles Gasparino.”

Morgan further emphasizes Judge Orrick’s observation: “Judge Orrick notes that Judge Torres’ verdict was ‘specifically tailored to the facts of this case and based on findings from a thorough examination of the evidence,’ which aligns with the Ninth Circuit’s ruling in the Hocking case. This implies a judicial review custom-made for the Ripple case, possibly restricting the wider implications of the decision for the broader crypto sector. Consequently, it may impact the SEC’s consideration of whether to appeal the decision.”

The lawyer supporting XRP stated, “For me, the key point is that if the SEC’s decision doesn’t contain a clear legal mistake and they can clearly differentiate the Ripple case due to its unique facts, then why bother appealing unless there are factors beyond the law driving the decision to appeal.”

As a crypto investor, I’ve noticed that the community’s responses to Morgan’s recent post on Morgan’s X are varied. When user Spirconi voiced their confusion about Morgan’s initial assessment, Morgan clarified his position: “Initially, I was leaning 80% in favor of an appeal and 20% against it. However, after further consideration, my stance has shifted to a 55-45% favor for an appeal.”

In response to a comment about the SEC’s lack of announcement regarding the Ripple verdict, Morgan suggested that the SEC might still be undecided on their stance. Another user, @tes23ract, proposed the possibility of the SEC postponing its decision until after the upcoming US elections. However, Morgan clarified that this is unlikely as there is a 60-day deadline that begins once the final orders were issued.

At press time, XRP traded at $0.5748.

Pro-XRP Lawyer Lowers Odds For SEC Appeal Against Ripple To 55%

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2024-08-28 19:12