How likely is an SEC appeal of the Ripple (XRP) lawsuit? Lawyer Chips In

TL;DR

A possible SEC appeal is increasingly likely, with one expert estimating a 60% chance. However, he doesn’t have the best track record when it comes to this particular case. A call on the horizon?

Despite recent developments, the legal battle between Ripple and the US Securities and Exchange Commission (SEC) is still ongoing. The last major ruling came in August when federal judge Torres determined that secondary market sales of XRP to retail investors did not constitute securities transactions. However, it ordered Ripple to pay $125 million for violating certain securities laws.

The amount represents just a fraction of the $2 billion initially insisted on by the regulator. That led to speculation that the agency would appeal the decision before the Oct. 7 deadline.

Last week, Eleanor Terrett (a reporter who works for Fox Business) said that a former SEC lawyer told her that the dog “will likely” challenge Judge Torres’ decision starting in July 2023 on “programmatic sales XRP in the Ripple case.” The lawyer allegedly argued that “everybody there (at the SEC) really believes that the decision is wrong, that it’s not good law, and it should be appealed.”

More recently, US attorney Fred Rispoli claimed that the chances of this scenario had increased to 60%. He believes a “no appeal” would mean the “programmatic sales” are “a one-time loss that literally only applies to Ripple’s secondary sales and is a distinguishable SDNY loss to the SEC.”

“Appealing and getting Ripple affirmed is a huge gift to all the 2nd Circuit litigators fighting the SEC (all New York and the SEC’s favorite) to argue that all secondary sales are not contracts of ‘investment,’ he added.

Rispoli’s previous version of the matter

Earlier this year, the lawyer predicted that the lawsuit between Ripple and the SEC would officially end at the end of July after a $25 million penalty for the company. As stated above, however, the case continues.

Rispoli also responded to Ripple’s motion (filed in mid-September) seeking a stay of the monetary portion of the Court’s ruling. He suggested the development could be a precursor to potential SEC appeal:

“Going through all this effort to establish a trust for the funds increases the chances of an appeal at the IMO. But ultimately, this is just the safest move for the SEC to buy time until the 7 of October to appeal”.

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