By Key Points
- According to legal experts, the Ripple SEC lawsuit could see an appeal with 60% odds.
- Ripple was fined $125M, a fraction of SEC’s original $2B demand.
- SEC may challenge the XRP sales ruling by the October 7 deadline.
- Attorney Fred Rispoli’s prior predictions on this case were inaccurate.
The Ripple SEC lawsuit might soon take another turn. In August, a significant ruling from Federal Judge Torres determined that Ripple’s sales of XRP on secondary markets did not qualify as securities transactions.
While this was a partial win for Ripple, the company was still fined $125 million for other securities laws violations.
The penalty, however, was substantially lower than the $2 billion the SEC originally demanded, leaving many to speculate about an appeal.
With the SEC’s deadline to appeal approaching on October 7, industry insiders are anticipating a possible legal challenge.
Fox Business reporter Eleanor Terrett cited a former SEC attorney who said that the regulator would likely appeal, particularly focusing on Ripple’s XRP programmatic sales ruling.
According to the attorney, many at the SEC believe the ruling was flawed and should be overturned.
Hi Tony @ThinkingCrypto1 , I would say there’s a 90% chance the #Gensler‘s SEC will appeal the Ripple #XRP decision as I believe their mission isn’t to win the case but rather to delay as long as they can to slow down $XRP adoption.
👉 that’s my 8 cents opinion, What’s say… https://t.co/aujmHh0KPN pic.twitter.com/OI94ejnfm3
— Johnny Krypto (@johnnykrypto00) September 30, 2024
Ripple SEC Lawsuit: Attorney Predicts 60% Appeal Odds
Attorney Fred Rispoli, an outspoken legal analyst, has now placed a 60% chance that the SEC will appeal the ruling in the Ripple SEC lawsuit.
According to Rispoli, the consequences of not appealing could limit the ruling to only affecting Ripple, particularly regarding secondary XRP sales. If the SEC chooses not to appeal, this might set a narrow legal precedent that only applies to Ripple.
“Not appealing and accepting a one-off loss would imply that the SEC’s defeat only pertains to Ripple’s secondary sales. This could be a missed opportunity for the SEC to argue that all secondary sales are investment contracts,”
Rispoli explained. He also suggested that the SEC could use an appeal to strengthen its overall legal position in future cases involving other companies.
An SEC victory on appeal could embolden the regulator’s stance against other crypto firms, especially those fighting similar legal battles. However, Rispoli’s track record with predictions about the Ripple SEC lawsuit isn’t perfect.
Earlier this year, he incorrectly forecasted that the case would end by July, following a $25 million settlement. Instead, the lawsuit has dragged on for months.
SEC’s Next Steps in the Ripple SEC Lawsuit
Ripple has already taken proactive measures to challenge the financial penalty it was ordered to pay.
The company recently filed a motion asking for a stay on the $125 million judgment while the lawsuit continues. Rispoli views this move as a potential precursor to the SEC filing an appeal.
He added that the SEC might be buying time with this appeal, using Ripple’s stay motion as leverage to delay final payments and continue its fight.
As the October 7 deadline looms, many are eager to see if the SEC will indeed escalate the Ripple SEC lawsuit to the next legal level.
If the SEC files an appeal, it could extend the litigation for several more months—or even years—keeping the crypto industry on edge.
On the other hand, if the SEC chooses not to pursue the appeal, Ripple’s partial victory could serve as a legal precedent for future cases involving other crypto tokens and their classification as securities.
The Ripple SEC lawsuit remains one of the most high-profile legal battles in the cryptocurrency space, and the outcome of the SEC’s potential appeal could have far-reaching consequences.
