Despite Ripple's withdrawal, the XRP lawsuit might not be over. An SEC appeal is possible, and a lawyer warns the case remains unresolved.

XRP Lawsuit: SEC Appeal Looms, Lawyer Warns – Is It Really Over?

The XRP community's celebration might be premature. While Ripple has dropped its cross-appeal, the possibility of an SEC appeal keeps the legal drama alive. Could this long-fought battle have another chapter?

The Unresolved XRP Lawsuit: A Lawyer's Perspective

Despite the general celebratory mood, former SEC lawyer Marc Fagel throws a wet blanket on the 'case closed' narrative. He asserts that the XRP lawsuit remains unresolved until the SEC officially drops its appeal. Fagel's perspective, shared on X, suggests the SEC's previous vote might not have included the authority to drop the appeal, raising questions about the commission's next move. This is further complicated by the unusual nature of the case itself. As Fagel himself states, "...we don’t know what exactly they voted on—it would be unusual for them to have simultaneously voted to approve both options, but nothing about this is normal."

SEC's Appeal: A Lingering Threat?

The SEC's decision to appeal parts of the summary judgment significantly altered Ripple’s litigation stance. Earlier, Ripple seemed willing to accept the court’s finding on institutional sales, but now it appears more aggressive. Legal analysts suggest the SEC’s move influenced Ripple’s decision to contest earlier unfavorable rulings.

Was Settling a Mistake? A Counter-Narrative

Amidst the talk of settlement, some critics argue that Ripple's actions are an admission of guilt. However, XRP lawyer Bill Morgan firmly rejects this notion, emphasizing that settlements are not admissions of fault. He also clarifies that Ripple's win isn't solely about XRP not being a security in retail use. Instead, the crucial victory lies in the court's ruling that XRP itself, regardless of sales context, isn't a security, potentially classifying it more as a commodity.

Ripple's Stance: Ready for a Broader Challenge

Ripple's willingness to appeal the institutional sales ruling may depend on the penalties imposed. If the judge imposes harsh remedies, Ripple is expected to challenge the original finding. This legal move could extend the case and potentially reach higher courts.

Looking Ahead: What's Next?

While Ripple is dropping its cross-appeal and the SEC is expected to follow suit, according to Brad Garlinghouse's announcement, the final chapter isn't written yet. Judge Torres had suggested dropping the appeals to end the litigation. If the SEC does drop its appeal, the $50 million settlement, agreed upon as an alternative to the original $125 million penalty, would likely proceed, finally concluding this saga.

The Bottom Line

So, is the XRP lawsuit *really* over? Maybe not just yet. Keep your eyes peeled, folks. This legal rollercoaster might have a few more dips and turns before it pulls into the station. But hey, at least the crypto world keeps things interesting, right?