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Legal expert Bill Morgan recently shared insights on the SEC vs. Ripple appeal on X, addressing growing concerns among XRP holders. Morgan’s analysis suggested that while certain legal observations, like obiter dictum (comments not central to the ruling), might come up during the appeal, XRP’s core status as a non-security remains largely unchallenged.
With just 28 days remaining for a re-appeal window to close, both sides are now eyeing their next move in what could be a game-changing showdown!
SEC Unlikely to Tackle XRP’s Security Status
Don’t want to be accused of FUD with respect to XRP but obiter is not untouchable on appeal. The SEC did however indicate when it sought leave to file an interlocutory appeal it was not seeking to challenge the finding XRP itself is not a security. https://t.co/enuUlBTzA3
— bill morgan (@Belisarius2020) September 9, 2024
Morgan in his X post, emphasized that the SEC has already indicated it is not aiming to challenge the ruling that XRP itself is not a security. This was confirmed when the SEC filed for permission to appeal, making it clear that XRP’s classification won’t be up for debate. His comments reassured XRP holders that while legal nuances may be revisited during an appeal, the core judgment that XRP is not a security should stand firm.
Could Legal Loopholes Change Things?
Drawing on his knowledge of Australian law, Morgan noted that although obiter dictum could be re-examined if the core reasoning behind the ruling (ratio decidendi) is contested, this doesn’t necessarily mean XRP’s status would be at risk. He speculated that U.S. law might approach this issue similarly but left room for technical interpretation depending on the appellate court’s stance.
Marc Fagel Backs Morgan’s Analysis
Marc Fagel, a legal expert and former SEC Regional Director, joined the discussion by agreeing with Morgan’s analysis. He mentioned that while the SEC could attempt to appeal this aspect of the ruling, it might not be a significant part of their strategy.
Fagel clarified that while the SEC has remained vague in several similar cases, it’s unlikely that the Second Circuit Court of Appeals would address XRP’s non-security status directly. He pointed out that even though the SEC has room to push for a broader appeal, it doesn’t necessarily mean that the court will take up that specific question.
However, Fagel and Morgan agreed that while legal technicalities can be discussed, the Second Circuit is unlikely to directly address XRP’s classification.
XRP Holders Breathe Easier
In short, the chances of XRP’s security status being overturned remain low. While the appeal could explore certain legal loopholes, the heart of the matter seems to stay intact, with XRP’s non-security status standing strong despite ongoing litigation.
The cryptocurrency world watches with bated breath as the clock ticks down on the appeal window. What will happen next?