XRP surged 4.41% to $0.6151 as speculation of an SEC appeal in the Ripple case sparked strong market interest.

John Deaton discusses the potential outcome of an SEC appeal, highlighting key aspects of Judge Torres' ruling.

Fox Business reveals an SEC insider’s view: the agency believes Judge Torres' ruling is flawed and should be appealed.

XRP Breaks Through $0.60 on Appeal Chatter

On Saturday, September 28, XRP rallied by 4.41%, reversing a 0.29% loss from the previous session, closing at $0.6151. Significantly, XRP outperformed the broader market, which declined by 0.14%, taking the market cap to $2.260 trillion.

SEC vs. Ripple: Appeal Speculation

On Saturday, speculation about the chances of an SEC appeal against rulings in the SEC v Ripple case impacted XRP demand.

John E. Deaton, candidate for the United States Senate in Massachusetts and Amicus Curiae attorney, shared his thoughts on an SEC appeal. Deaton stated,

“I don’t believe an appellate court will rule Judge Torres was in error in applying the 3rd prong. Judge Torres made her ruling very fact specific. The SEC did not rely on any expert testimony related to XRP holders (it was excluded anyway) but the Judge did rely, however, on the XRP Holder affidavits I submitted.”

Deaton elaborated on the possible outcome of an appeal, saying,

“An appellate court could say, just as Judge Torres acknowledged, there could be a scenario where secondary sales could qualify as investment contracts because the facts meet all the Howey factors. But in the Ripple XRP case, the facts presented just don’t satisfy it. Thus, the case gets affirmed on appeal but it doesn’t prevent the SEC from arguing secondary sales constitute investment contracts in other cases.”

Deaton highlighted that Judge Torres did not apply the second prong of the Howey Test (common enterprise) since secondary sales did not satisfy the third prong.

If the 2nd Circuit deemed that Judge Torres applied the 3rd prong incorrectly, the case would return to Judge Torres for reassessment. Deaton believes that Judge Torres would likely rule that the SEC did not establish a common enterprise. Another SEC loss could lead to a second appeal.

Deaton concluded,

“It makes no sense and would be a total waste of taxpayer money to appeal this decision, which is why someone like Gary Gensler might just appeal.”

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