SEC's appeal dropped; XRP classified as digital commodity

A cryptocurrency lawyer, John Deaton, has stated that the U.S. Securities and Exchange Commission (SEC) dropping its appeal against Ripple marks a significant moment. He believes it confirms that XRP tokens are digital commodities and not securities. Deaton noted that there remains a $125 million judgment against Ripple for improperly selling XRP. With the SEC's decision, Ripple may now seek to negotiate this amount down. Deaton has represented XRP holders, claiming their interests were ignored in the SEC's case. Looking ahead, Ripple filed a cross-appeal in October 2024. Deaton thinks the SEC wants to avoid this proceeding, as a ruling could limit its authority in similar cases. This puts Ripple in a stronger position for negotiations. However, there is still a legal barrier. A judge has issued an injunction that stops Ripple from selling XRP to institutional investors to avoid breaching securities laws. Deaton emphasized that Ripple needs to address this issue if it wants to sell directly to banks in the U.S. Deaton believes the case against Ripple was a broader attack on the cryptocurrency industry. He sees it as a message from traditional finance to stifle innovation. He is confident that Ripple’s status as an American company will play in its favor as it continues to fight legal challenges.