- The ongoing legal battle between Ripple and the SEC continues to be a focal point for crypto investors.
- Speculations are rife regarding a potential SEC appeal, with former SEC attorneys weighing in on the likelihood and implications.
- James Farrell, a noted legal analyst, suggests a 75% chance of an SEC appeal on certain liability aspects in the XRP case.
Ripple’s SEC lawsuit enters its final phase, with speculations about a potential appeal and its impact on the broader crypto market.
Ripple SEC Case Enters Final Round
The legal tug-of-war between Ripple and the SEC has been one of the most extended and closely watched cases in the cryptocurrency landscape. Judge Torres recently dictated that Ripple must pay a $125 million penalty to the SEC, a figure far removed from the initial demand of $2 billion. This judgment has sparked mixed reactions, with many interpreting it as a partial win for Ripple. Despite the judgment, discussions about a potential SEC appeal—or even a re-appeal by Ripple—have been gaining momentum, capturing the interest of the entire crypto community.
Ex-SEC Lawyers Predict Potential Appeal
Former SEC attorneys, including Marc Fagel and James Farrell, have suggested that an appeal from the SEC is highly likely. Farrell has taken to social media to predict a 75% chance that the SEC will challenge parts of the initial ruling, particularly concerning liability issues. According to Farrell, while the SEC had some success with institutional sales, it did not fare as well with secondary market sales and the use of XRP for payments. These factors contribute to the uncertainty surrounding the case and the market sentiment.
What’s Next in the XRP Lawsuit?
The XRP community remains cautiously optimistic but is acutely aware that a potential appeal could lengthen the legal drama. A final ruling in this case will have significant ramifications not only for XRP but for the entire digital asset regulatory framework. Pro-XRP attorney Fred Rispoli has opined that an appeal may be delayed, with last-minute decisions expected. Meanwhile, Ripple’s leadership, including CEO Brad Garlinghouse and CLO Stuart Alderoty, have downplayed concerns about an appeal, emphasizing that they have no intention of dragging the case further.
Adding another layer of complexity, Rispoli has previously questioned whether Ripple would be entitled to statutory interest if it wins an appeal, potentially forcing the SEC to pay back the $125 million penalty plus interest. James Farrell has also noted that the SEC could be liable for appeal costs and bond payments if Ripple emerges victorious in an extended battle. With the SEC’s appeal deadline approaching in October 2024, the stakes are incredibly high.
XRP has experienced volatile trading recently, with its price touching $0.5866 and a trading volume of $928.86 million, a decline of 11%. Despite the volatility, XRP Futures Open Interest is up by 1%, suggesting a slightly positive market sentiment. As the legal proceedings move forward, all eyes will be on how these developments impact both XRP and the broader cryptocurrency market.
Conclusion
The Ripple vs. SEC case remains a cornerstone event for the cryptocurrency community, with far-reaching implications. The anticipation of a potential SEC appeal adds a layer of uncertainty, making the legal environment more complex and unpredictable. As Ripple and the SEC navigate these final phases, market participants eagerly await a resolution that could redefine regulatory standards in the crypto space. The outcome will not only determine Ripple’s fate but also set a precedent for the broader digital asset market.
