Pro-XRP Lawyer Says Both SEC and Ripple Will Appeal Judge Torres’ Decision

Pro-XRP lawyer Bill Morgan speculates that the SEC and Ripple will appeal Judge Torres’ decision.

Australian-based lawyer Bill Morgan has highlighted the possible next line of action in the SEC v. Ripple lawsuit. In a tweet today, attorney Morgan said both Ripple and the SEC would appeal Judge Torres’ recent summary judgment ruling.

Ex-SEC Lawyer Shares Same Sentiment

Attorney Morgan’s stance echoes assertions by Marc Fagel, a retired attorney specializing in SEC enforcement and securities litigation. In an exchange yesterday, Fagel noted that he does not care much about the SEC v. Ripple lawsuit.

However, Fagel asserts that the SEC and Ripple will appeal Judge Torres’ decision on the case. He added that the regulatory agency has a better chance of having Judge Torres’ decision on programmatic XRP sales reversed.

In response, attorney Morgan said he agrees with Fagel’s assertion that the parties will appeal the judge’s ruling. Per Morgan, the parties will not appeal the decision if they settle.

Unfortunately, I think Marc is correct and both sides will appeal. Unless there is a settlement now. https://t.co/hxo8WwgALx

— bill morgan (@Belisarius2020) July 16, 2023

Judge Torres’ Split Decision

For context, Judge Torres issued the much-anticipated summary judgment decision for the SEC v. Ripple case. As reported, the judge ruled that Ripple’s programmatic XRP sales are not securities while finding the company’s direct past sales to institutional clients as securities.

A trial will be held regarding whether Ripple execs aided the leading blockchain company in selling XRP to institutional clients.

Many consider Judge Torres’ decision as a split victory for the parties. However, there is growing speculation that one or both parties could appeal Judge Torres’ decision on the case.

Ripple Will Appeal Decision on ODL Sales

Attorney Morgan is among those who believe Ripple will appeal the ruling. According to the pro-XRP lawyer, Ripple’s appeal will be based on ODL-related XRP sales.

He pointed out that, as a matter of law, the Howey test, a longstanding securities test, does not apply to ODL-related XRP transactions.

Ultimately I think Ripple would appeal on ODL customer sales on the basis that as a matter of law the Howey test does not apply to them

— bill morgan (@Belisarius2020) July 16, 2023

Meanwhile, none of the parties have declared intention to appeal the ruling. However, top lawyers have been commenting on the possibility of the SEC v. Ripple lawsuit heading to the Court of Appeals for the Second Circuit.

As reported today, pro-XRP lawyer John Deaton speculated that the judge would not approve the SEC’s request for an appeal. Per Deaton, the SEC sought summary judgment according to Howey, and the judge conducted a “strict application” of the test to every XRP transaction the SEC alleges to be a security.

Since a part of the case is scheduled for trial, it remains to be seen whether any of the parties will immediately request an appeal.