A former SEC attorney has indicated that the agency is likely to appeal Judge Analisa Torres’s July 2023 ruling in the Ripple case, which declared that XRP sales cannot be considered as a security transaction. This sentiment reflects a broader belief within the SEC that the decision is flawed and could have serious implications on the cryptocurrency market.
🚨NEW: A former @SECGov lawyer who recently left the agency tells me the SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the $XRP programmatic sales in the @Ripple case partly because: “everyone over there [at the SEC] truly believes that the decision is…
— Eleanor Terrett (@EleanorTerrett) September 26, 2024
As the appeal deadline is nearing, October 7, there has been a rise of speculation regarding SEC’s next step. Critics argue that the SEC’s focus is on how to control cryptocurrency innovation in the U.S. instead of protecting the investors and providing a safe space for development in the field.
Implications on Ripple and the Crypto Industry
The implications of the appeal will be significant for XRP and the entire crypto industry. While the Ripple hailed the initial ruling as victory, leading to a surge in the XRP Price, an appeal could create a feeling of uncertainty and FUD within the investors.
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At press time, the price of XRP is at $0.5907 with an increase of 0.5% in the last 24 hours as per CoinGecko. There has been no significant affect on XRP pricing as such but in the coming future, if SEC does file an appeal, we will see a dip in these numbers.
The legal landscape remains murky, as confusion stirs up further with different courts reaching different conclusions on similar issues (Gensler stating Bitcoin to be a commodity).
Previous Appeal by the SEC
Previously, Judge Torres has already denied the SEC’s previous requests for interlocutory appeal (appeal of non-final order) and declared that her decisions were based on intensive studies and examinations of Ripple’s transactions.
The chaos surrounding the crypto regulations has frustrated the investors along with the crypto community and they see clarity on the regulatory guidelines in the rapidly evolving industry.
As October 7 approaches, all eyes will be on the SEC to see if it will proceed with an appeal and how the appeal might affect the future of XRP and the crypto regulation in the United States.
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