• The US Securities and Exchange Commission (SEC) has indicated its plan to appeal the recent ruling in the case against Ripple.
• John Deaton, founder of Crypto Law, believes that the decision of the judge will remain in effect until the appeal is handled and settled.
• The XRP price experienced a decline following the news, but this decline was observed across the entire market.

The SEC has filed documents expressing its intent to appeal the court’s decision regarding XRP, as revealed on Friday.

While an ex-SEC official sees this appeal as potentially negative for Ripple, John Deaton, a lawyer supporting XRP, believes otherwise. He stated that the appeal would not disrupt Ripple, commenting, “not even close.”

Judge Torres’ ruling remains in effect for now

The SEC’s mention of appealing Judge Analisa Torres’ decision came to light in documents related to the agency’s case involving Terraform Labs and its former CEO Do Kwon. The SEC criticized the judge’s decision and indicated the possibility of an appeal.

In response to a suggestion that Ripple could be negatively affected, John Deaton responded through a tweet, saying:

“An appeal is not even close to being a setback. First, it will take two years before a decision is issued by the 2nd Circuit, if it’s appealed. The Torres Decision remains in effect until then, at least in the 2nd Circuit. Second, even if the 2nd Circuit declared Torres wrong in her application of the 3rd Howey factor (which I predict they won’t), that doesn’t mean the SEC wins on Programmatic sales (sales on exchanges).”

Deaton suggests that Judge Torres may still rule in the same manner even if the SEC appeals the case.

“Let me be more precise: I’m not suggesting that Judge Torres’ decision holds sway in the SDNY. Another district judge could disagree with her. However, I believe a fellow judge in the 2nd Circuit will find it difficult to disagree with Judge Torres, especially considering she cited Judge Castel from Telegram. After reading the Coinbase transcript, we can see it’s already developing this way,” he explained.