Ripple Lab’s Legal Saga: SEC Insider Hints at Bold Appeal Strategy

The last may not have been heard of the Ripple versus SEC legal battle despite the major “win” by Ripple Labs. Although Judge Analisa Torres handed down a judgment that put to rest the about three-year legal battle and imposed a $125 million penalty, the U.S. SEC (Securities and Exchange Commission) may appeal.

Judge Torres’ Ruling

In the landmark ruling by Judge Torres, Ripple has been forbidden from breaching securities law in the future. However, the ruling and fine on Ripple seem not to have appeased the SEC, which had anticipated a $2 billion penalty. This has sparked debates as to whether the SEC would appeal the judgment.

Notably, the SEC had previously not been successful in filing an appeal before Judge Torres handed down her ruling.

In a post on X, Marc Fagel, a former SEC regional director, shared his views on possible options that the regulatory body could take should it decide to appeal the judgment. Fagel’s perspective clarified the “victory” and the secondary sales and penalties issue.

Not exactly. The SEC won on institutional sales, which were found to violate the law; Ripple won on “programmatic” sales (i.e. sales through third-party intermediaries). It is the latter which the SEC would be appealing (but then Ripple would likely cross-appeal the former).

— Marc Fagel (@Marc_Fagel) August 14, 2024

Former Insider Provides Insight on SEC’s Potential Appeal

According to Fagel, the U.S. SEC won on institutional sales, which were found to violate the law. However, Ripple won on “programmatic” sales made via third-party intermediaries. “It is the latter which the SEC would be appealing, but then Ripple would likely cross-appeal the former,” Fagel stated.

Despite Fagel’s views and clarifications, some in the XRP community and broader crypto ecosystem still believe that if the U.S. SEC files an appeal, the appellate court might likely review the entire ruling. Despite these opinions, the SEC’s legal team has not revealed its strategy.

XRP’s Price Slips

While the SEC’s next legal step remains unknown for now, XRP, which initially rallied to $0.63 following Ripple’s legal victory, has once again slipped. As of this writing, CoinMarketCap data shows XRP trading at $0.5689.

 While the cloud of legal uncertainty hangs over Ripple, the general sentiment in the crypto space, particularly among investors, hopes for a final resolution to see XRP focus on growing its assets.