- The SEC has been fuming over a recent court ruling.
- Ripple’s XRP will face a tense October 7 deadline.
- Insiders have hinted that the SEC isn’t finished with Ripple.
Beneath the surface of a landmark legal battle, a ticking clock is stirring tension in the cryptocurrency world. As the U.S. Securities and Exchange Commission (SEC) inches closer to an October 7 deadline, rumors are mounting that it may challenge a pivotal court ruling that sent ripples through the industry.
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At the heart of the case is Ripple Labs ‘ XRP token, and the stakes couldn’t be higher. A former SEC lawyer, now speculating from the sidelines, claims that the commission is far from satisfied with the decision that redefined the rules for crypto assets. Could this lead to an appeal that reshapes the future of digital currency regulation?
SEC May Challenge Ripple’s Ruling This Month
The answer is potentially just weeks away, and the cryptocurrency landscape is bracing for impact. Eleanor Terrett, a Fox Business journalist, reported that the conjecture originates from a former SEC lawyer, who contends that the commission may pursue an appeal due to its belief that the ruling was fundamentally flawed.
The former SEC lawyer expressed that the commission found Judge Annalisa Torres’s July 2023 ruling unsatisfactory and deserving of an appeal. This speculation arises as the October 7 deadline for the SEC to act approaches.
In her ruling, Judge Torres determined that XRP ’s programmatic sales did not meet the third condition of the Howey Test, thus ruling that these transactions on exchanges do not violate U.S. securities regulations. She did conclude that Ripple’s direct sales to institutional investors breached securities laws.
Following Judge Torres’s decision, the SEC formally requested an interlocutory appeal against her ruling in August 2023. The commission signaled its intent to contest the ruling, asserting that Ripple’s programmatic sales to retail investors contravened securities regulations.
Ripple’s XRP Rises Amid SEC’s Appeal Concerns
Despite the looming appeal, XRP’s market performance remains robust. The token lost 0.2% in the past 24 hours and is trading at $0.588. The coin’s trading volume also surged by over 16%, reaching $1.226 billion.
Legal experts are weighing in on the situation. Jeremy Hogan, an attorney at Hogan & Hogan, remarked that the SEC’s desire to appeal reflects its position as the losing party in the case. He emphasized that the commission should prioritize investor protection and capital formation instead of engaging in drawn-out legal battles.
Other commentators echoed Hogan’s sentiment , suggesting that any SEC appeal would stem more from a dislike of the ruling than a belief in Ripple’s wrongdoing. Ripple’s Chief Legal Officer, Stuart Alderoty, has previously stated that he considers the case effectively settled.
He pointed out the court’s consistent rejection of the SEC’s overreach and indicated that the likelihood of an appeal is low. Another legal expert, Fred Rispoli, noted that the court may not deliver a ruling until 2026 even if an appeal occurs.
On the Flipside
- The SEC’s appeal will increase uncertainty for retail investors, undermining confidence in the cryptocurrency market.
- Ripple could benefit from delays caused by the SEC’s appeal, allowing it to strengthen its market presence.
Why This Matters
The potential SEC appeal against the Ripple ruling could establish a critical precedent for digital asset classification and regulation, significantly impacting investor confidence in the broader crypto market. The outcome may either reinforce or challenge the principles set in this landmark case, shaping the future of cryptocurrency regulation.
To learn more about the recent legal victory against the SEC and Ripple’s plans for the future, including the RLUSD stablecoin and the XRP Ledger, read here:
Ripple’s President Spills Secrets on SEC Win, RLUSD, and XRPL
To learn more about Ripple’s new stablecoin, RLUSD, and how it could impact the price of XRP, read here:
Ripple’s RLUSD Ignites Million-Drop Theory for XRP
