- The SEC’s appeal may focus on Ripple’s programmatic sales, with the October deadline sparking speculation.
- Ripple remains confident, but uncertainty lingers, keeping the market volatile.
After the revelation shared by CNF that a researcher exposed how the SEC views speculation’s role in XRP’s utility, the XRP lawsuit, a major legal battle in the crypto space, may not be over yet.
Although Ripple was ordered to pay a $125 million penalty in August, recent developments suggest the U.S. SEC may file an appeal, potentially sparking another phase in the case. The possibility of an appeal has garnered attention, especially as the October deadline for action draws near.
Former SEC lawyer Marc Fagel has shared insights into what the agency’s appeal strategy might look like, focusing on challenging the ruling regarding programmatic sales, which were considered not to be unregistered securities offerings.
Ex-SEC Lawyer Predicts Appeal Focus on Programmatic Sales
As discussed recently in a CNF update, attorney Fred Rispoli noted that the SEC is still undecided and may wait until the last minute to announce an appeal. However, Ripple’s Chief Legal Officer Stuart Alderoty confirmed that Ripple does not intend to appeal, having obtained a stay order on the $125 million penalty pending further proceedings. According to Marc Fagel,
the SEC’s appeal is likely to target the legality of Ripple’s programmatic sales made through intermediaries. Fagel also clarified that the appeal wouldn’t focus on the penalties but rather on overturning this specific part of the ruling.
His comments came during a recent discussion, where he suggested the SEC is looking to address how these sales were ruled compliant. Another former SEC lawyer, James Farrell, has estimated about a 75% chance of the SEC moving forward with an appeal, emphasizing that not appealing could weaken the agency’s stance in future cases.
Ripple Denies Appeal Rumors, But Market Remains Uncertain
With the upcoming October 7 deadline approaching, speculation remains, and some experts believe the SEC may still file a last-minute appeal. If so, Ripple is expected to cross-appeal, potentially delaying the case further and causing continued volatility in the XRP market, with its price fluctuating between highs and lows recently.
Despite the SEC’s potential move, Ripple’s leadership remains confident that the case is closed. CEO Brad Garlinghouse and CLO Stuart Alderoty have both denied claims of an impending appeal, stating the case has concluded.
In the meantime, according to CoinMarketCap, Ripple (XRP) is trading at $0.5875, with a 0.09% increase in the past day and a 0.56% increase over the past week.
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