As the deadline for the U.S. Securities and Exchange Commission (SEC) to file an appeal in the Ripple lawsuit approaches, speculation intensifies within the cryptocurrency community. The SEC’s window for an appeal closes on October 7, and they must decide on whether to challenge Judge Torres’ rulings in the XRP case before then.
Marc Fagel and James Farrell, both former SEC attorneys, have expressed strong confidence that the regulatory body will pursue an appeal. They argue that refraining from this action could potentially undermine the agency’s position. Fagel has even suggested that the SEC should appeal because it lost on programmatic sales which is a significant issue.
Potential Appeal Timeline
However, lawyer Fred Rispoli stated, “I think SEC still doesn’t know if it will appeal. I don’t expect a decision until the last minute.” He suggests that the SEC may still be deliberating its course of action and might not reveal its decision until the last moment.
The cryptocurrency community, particularly XRP holders, is closely monitoring developments as the appeal deadline nears. Ripple’s Chief Legal Officer (CLO) Stuart Alderoty has revealed the company’s intention to focus on the finality of the ruling from August, stating that there should be no appeal and both parties should move on.
However, Ripple has also secured a stay order from the court, which temporarily suspends the $125 million penalty payment to the SEC pending potential appeal proceedings. With the SEC’s current uncertainty, this move provides Ripple with some financial flexibility as the legal situation continues to unfold.
The SEC’s recent filing in the Binance case notably omitted any mention of an appeal against Judge Torres’ summary judgment regarding XRP programmatic sales. This omission has led to increased speculation about the SEC’s strategy moving forward. This filing also contained an apology for the SEC’s use of the term “crypto asset security,” which Alderoty called out the regulator for.
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More Trouble for the SEC
Fred Rispoli also believes Elon Musk could use XRP’s status against the SEC. Rispoli described this as a chance to “poke the SEC in the eye,” suggesting that Musk should incorporate XRP into X’s payment system. Incorporating XRP and other cryptocurrencies that the SEC has failed to label as securities would be the perfect move to annoy the SEC but leave them powerless.
Rispoli characterized Musk’s apparent hesitation to pursue this route as “legally protected but afraid,” noting that such caution is uncharacteristic of the tech entrepreneur. Rispoli made this suggestion because of the SEC’s ongoing scrutiny of Musk’s $44 billion acquisition of Twitter, with the agency seeking sanctions against Musk for allegedly failing to appear for court testimony.
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