Ripple Labs is ready to face a crucial battle with the U.S. Securities and Exchange Commission (SEC) regarding its token identity. The lawsuit, which is slated to be held in October, will determine whether the token is a security or not. The case, which was filed by the SEC in December 2020, has yet to get a concrete answer.
Considering the impact between the two parties, many took to X to vent their emotions and remained divided on whether the SEC would continue the appeal. Ripple’s Legal Officer, Stuart Alderoty, stated that the case on Ripple was over, but the ‘fair notice’ defense was still alive. Alderoty asserted that Ripple would win the case, even if it reached the Supreme Court.
However, Marc Fagel, a retired securities lawyer, stated that the appeal, if filed, will go to the 2nd Circuit Court of Appeals and not the Supreme Court. He added that the decision from the 2nd Circuit Court of Appeals would take about 10-11 months and later on move to the Supreme Court.
If an appeal is filed, it will go to the 2nd Circuit Court of Appeals–not the Supreme Court. The 2nd Circuit’s decision–which would take another 10-11 months or so–could then be appealed to the Sup Ct; but the Sup Ct doesn’t need to accept it (and usually doesn’t).
— Marc Fagel (@Marc_Fagel) September 23, 2024
Earlier, Judge Analisa Torres ruled that Ripple did not violate the SEC regulations concerning its programmatic sales of XRP to investors. However, she added that the token had violated its institutional sales.
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Based on the ruling, Ripple Labs was ordered to pay a penalty of $125 million. However, Ripple sought a 120-day stay on the fee, which was approved by the SEC. The legal proceedings have so far received mixed responses from the crypto community. If the appeal is extended, then the case will be prolonged to the next year. If not, then Ripple will complete its penalties, and the case will finally be closed.
Overall, the verdict would impact not just the future of Ripple and XRP but also its future projects. Notably, a Ripple Swell conference will be held in October, during which new projects will be unveiled.
