There’s growing speculation that the U.S. Securities and Exchange Commission (SEC) is preparing to appeal the recent ruling in the Ripple lawsuit concerning XRP. This comes after Judge Analisa Torres ruled in favor of Ripple, stating that XRP is not a security when sold to retail investors.
Legal experts believe the SEC’s case is weakened by its refusal to call key witnesses. If the court rules in Ripple’s favor, it could reshape how secondary sales of XRP are classified, benefiting Ripple significantly. Even if an error is found, the case could return to Judge Torres, where the SEC might face further losses due to insufficient evidence.
Amid the current uncertainty, one user posed a question on Twitter: if the SEC appeals, could the appeal be rejected? Former SEC lawyer Marc Fagel responded that the Court of Appeals is obligated to hear the appeal.
Another user speculated that while the SEC could appeal, the higher court might reject it, leading to a loss of the $125 million fine. Fagel clarified that the appeals process typically takes 10 to 11 months, and the penalty won’t be the focus of the SEC’s appeal. Ripple could potentially cross-appeal that aspect, but it’s unlikely to succeed.
He wrote, “No. The Court of Appeals has to hear the appeal (typically a 10-11 month process). And the penalty won’t be at issue in the SEC’s appeal (Ripple could cross-appeal that part of the case, but is highly unlikely to win).”
On the flip side, analysts are closely monitoring how these legal developments could influence XRP’s price and the broader cryptocurrency market. XRP has seen an increase, trading at around 62 cents with heightened trading volume, suggesting renewed investor interest. As for Bitcoin, it is currently trading in red, down by more than three percent at $63, 649.
