In the wake of the recent ruling that deemed the programmatic sale of XRP tokens as non-securities, there has been speculation about the potential impact of a possible appeal by the United States Securities and Exchange Commission (SEC) on the cryptocurrency market. However, John Deaton, a prominent lawyer known for being pro-XRP, has taken to Twitter to reassure XRP holders that the effects on them are unlikely to be significant, even if the SEC decides to appeal the ruling.

The recent judgment by Judge Torres, which concluded that XRP’s sales through exchanges are not securities, has raised new questions about the legal consequences if the SEC chooses to challenge the decision. Representing over 75,000 XRP token-holders, John Deaton has shed light on the potential scenarios and complexities surrounding the implementation of the summary judgment.

Discussions over the possibility of an SEC appeal over the weekend caused some unease among investors, leading to cautious sentiment in the market. However, John E Deaton, a pro-XRP and Amicus Curiae attorney, provided a positive analysis of the potential appeal and its outcomes. He emphasized that even if a request for an appeal were to occur, the ruling by Judge Torres would remain the governing law for at least the next two years during the appeal process. This means that the SEC would have little success in challenging the judgment.

According to Deaton, the Second Circuit, where the appeal would be filed, is unlikely to find fault with Judge Torres’s application of the 3rd Howey factor. Therefore, it would not guarantee a victory for the SEC regarding Programmatic Sales. Importantly, Judge Torres would still have the authority to assess the other two factors and could reach the same conclusion that the SEC did not satisfy the common enterprise factor, which is considered a more difficult factor to meet.

John Deaton’s analysis suggests that the ruling by Judge Torres will continue to govern for the next two years, providing stability and reassurance to investors. The Second Circuit may handle the appeal, but it is unlikely to overturn Judge Torres’s decision on the 3rd Howey factor. This could be positive news for XRP holders. However, the situation is legally complex, and market participants should remain vigilant as events unfold.