The SEC Has 11 Days to Appeal the XRP Ruling

In a new round of the Ripple vs SEC legal conflict, former SEC lawyer Marc Fagel revealed the agency’s probable appeal strategy.

The Securities and Exchange Commission (SEC) has 11 days to appeal a court ruling that XRP sales were not required to be registered with the agency, in what could be a last-ditch effort to claim a victory in its two-year legal battle against Ripple Labs Inc.

A recent court victory for Ripple saw a judge rule that its sales of XRP, the native token of the XRP Ledger, did not qualify as sales of unregistered securities. This effectively dismissed the SEC’s case, which began in December 2020.

However, the SEC has maintained that programmatic sales of XRP — sales made through intermediaries without direct involvement from Ripple — did constitute sales of unregistered securities. If the agency decides to appeal, this is likely to be the main point of contention.

Former SEC lawyer Marc Fagel addressed rumors of a potential appeal in a recent tweet. According to Fagel, if the SEC does decide to appeal, it will likely challenge the court’s decision regarding XRP sales made through intermediaries. The appeal, he said, will not focus on the $125 million penalty that Ripple was ordered to pay, as Ripple received a stay order for that penalty.

“Many rumors swirling about a potential SEC appeal. If they do appeal, it will challenge the ruling on whether programmatic sales (i.e. through intermediaries) were unregistered securities offerings. It has nothing to do with the penalty.”

Fagel’s statement appears to contradict earlier reports, which suggested that the SEC could appeal the court’s decision on the definition of an “investment contract” under Section 2(a)(1) of the Securities Act of 1933. However, Fagel’s interpretation aligns with the agency’s closing arguments during the trial, in which it highlighted the need to determine the legal status of programmatic XRP sales.

Meanwhile, ex-SEC lawyer James K. Farrell also commented on the rumors, suggesting a 75% chance that the agency will proceed with an appeal. According to Farrell, failing to appeal might weaken the SEC’s position in future crypto asset cases. The October 7 deadline is fast approaching, leaving everyone guessing about the next move.

“I’d say there’s a 75% chance that the SEC will appeal the XRP ruling. The 7th Circuit recently reversed Judge Stadtmueller in another crypto case & the SEC fully appealed that decision. Failing to appeal here might weaken the SEC’s position in future crypto asset cases.”

XRP price took a toll amid SEC’s appeal rumors

XRP price has been impacted by rumors of a potential SEC appeal in its lawsuit against Ripple. At the time of writing, XRP is trading at $0.5834, down 1.4% over the past day, with a trading volume that has also decreased by 11%.

Despite a recent court victory for Ripple, which saw a judge rule that its sales of XRP did not qualify as sales of unregistered securities, the rumors of a potential SEC appeal have kept XRP’s price in the red for the past few days.

Both Ripple executives, CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, have maintained that the case is over, denying any potential appeal claims. However, many experts still believe that the SEC could file a last-minute appeal, which would drag the legal battle and potentially impact XRP’s market performance.

With both sides preparing for the next steps, the case remains one of the most closely watched in the crypto space. As the October deadline nears, the possibility of an SEC appeal could lead to extended legal battles, leaving XRP’s future hanging in the balance.

As XRP fiyatı bugün düşüyor, önemli gelişmeler yaşanıyor. Ripple’ın 14-15 Ekim tarihleri arasında düzenleyeceği Swell konferansı, stablecoin’i RLUSD’nin lansmanı ve potansiyel bir XRP odaklı ETF duyurusu ile hareketleniyor.

Ayrıca Ripple, XRP Ledger üzerinde 50 trilyon dolarlık bir tokenizasyon patlamasına hazırlanırken, herkes SEC’in devam eden davaya ilişkin bir temyiz başvurusu yapıp yapmayacağına odaklanmış durumda. Ripple liderliği bundan etkilenmiyor gibi görünse de yasal mücadelenin devam etmesi halinde XRP’nin ve kripto düzenlemelerinin geleceği önemli ölçüde değişebilir.