The U.S. Securities and Exchange Commission (SEC) has filed an appeal challenging Judge Torres’s ruling from July 2023, which favored Ripple by clarifying that XRP does not classify as a security for programmatic sales.
The appeal is now with the U.S. Court of Appeals, leading to fresh speculation about the possibility of a settlement between Ripple and the SEC during the 14-day appeal window.
An XRP enthusiast shared on social media platform X that the SEC might be pushing for a higher penalty than the original $125 million. However, former SEC lawyer Marc Fagel dismissed this notion, stating that the appeal isn’t about the penalty.
Source: Twitter He emphasized that there’s no realistic basis for a settlement, pointing out that the SEC had pursued an interlocutory appeal a year ago regarding programmatic sales, showing their consistency on the issue.
Attorney Bill Morgan provided additional clarity, stating that the SEC has only filed a notice of appeal, not a formal one yet. This leaves room for potential negotiations between the SEC and Ripple. Morgan noted that while settlement is technically possible within the 14-day window, the ideological gap between the two parties makes it unlikely.
There is also speculation that Ripple may file a cross-appeal, possibly challenging the court’s ruling on institutional sales. Both parties have significant issues at stake, but whether a settlement can be reached remains uncertain.
