The U.S. Securities and Exchange Commission (SEC) filed a notice of appeal on October 2, 2024, signaling its intent to challenge Judge Analisa Torres’ ruling in the Ripple case.
The broader crypto community believes the SEC intends to overturn the ruling from July 2023 that declared XRP is not a security when sold on public exchanges.
The SEC did not explicitly state this in its notice, and some also believe Ripple might seek to contest it in a possible cross-appeal. However, there’s a chance both parties might not have to go through the appeal proceedings.
A Potential Settlement
The notice of appeal has created a window for both parties to settle. As crypto expert Brett (@Brett_Crypto_X) pointed out, the SEC and Ripple have 14 days from the filing date to negotiate a resolution before the formal appeal is submitted.
Brett noted that settlements are common in litigation, especially when both parties could benefit from resolving the dispute quickly. Should a settlement be reached during this period, it would eliminate the need for further legal proceedings.
Ripple executives, including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, have expressed disappointment with the SEC’s decision to continue the legal battle. Alderoty referred to the SEC’s strategy as “litigation warfare” against the cryptocurrency industry.
Garlinghouse also expressed anger and has reaffirmed his commitment to fight the lawsuit, arguing that the SEC should not continually act without recourse or consequence. Although Ripple’s executives have not publicly expressed a desire for a settlement, settling with the SEC could significantly benefit XRP.
The lawsuit has held the digital asset down for a long time, and prolonging the battle could continue affecting it negatively. It could also put a hold on significant progress, like the approval of the XRP Exchange Traded Fund (ETF) recently filed by Bitwise.
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Will the SEC Settle the Legal Battle?
From the SEC’s perspective, the stakes are high, as the case against Ripple represents a broader effort to regulate the crypto industry under securities law. For Ripple, the appeal presents both a risk and an opportunity.
A successful settlement or cross-appeal could further solidify XRP’s non-security status, which would have significant implications for the company and the cryptocurrency market as a whole.
With this in mind, both sides have incentives to negotiate a settlement within the 14-day window following the notice of appeal. Such an outcome could provide a quicker resolution for Ripple while allowing the SEC to avoid prolonged litigation now that it has a lower budget.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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