After Ripple’s recent legal victory against the U.S. Securities and Exchange Commission (SEC), there is a lot of speculation in the crypto community about possible appeals and how they might impact XRP investors. On July 13, Judge Analisa Torres ruled that XRP is not a security, dismissing the SEC’s claims that Ripple had conducted an unregistered securities offering through its XRP sales. While this was a significant win for Ripple, there are still concerns about the SEC appealing the ruling.
Jeremy Hogan, a lawyer who supports XRP, has shared his thoughts on the possibility of appeals in the ongoing legal battle between Ripple and the SEC. Hogan argues that an appeal is unlikely due to the timing of the case and the nature of the ruling. Most appeals occur after the case is concluded, but in the Ripple lawsuit, there is no final judgment yet. Any appeal of Judge Torres’ Order would be considered an “interlocutory appeal,” which is rarely granted. These appeals typically occur when allowing discovery would reveal information that should remain confidential.
Hogan also points out that appeals are difficult to win because the appellate court usually defers to the lower court’s ruling, especially if the lower court reviewed the entire record. Judge Torres did review the entire record in this case, making it challenging for either party to overturn the ruling on appeal. Additionally, if the SEC were to appeal and lose, the decision would be followed by every Second Circuit Court (DCA), setting a precedent that other courts within the 2nd DCA would likely follow. This could limit the SEC’s ability to bring similar cases in the future.
Furthermore, Hogan suggests that Ripple is unlikely to appeal the ruling as long as it can pay the fine and the ruling does not adversely affect its business. Since the ruling was in favor of Ripple, the company has even less incentive to appeal. One potential issue for the SEC on appeal is the argument related to secondary market sales. The judge’s ruling may make it difficult for the SEC to argue that these sales were unregistered securities offerings.
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However, if the SEC does decide to appeal the ruling, it would likely lead to a lengthy legal battle that could last for months or even years. During this time, XRP investors would face continued uncertainty and potential market volatility as the case outcome remains unknown.
The potential outcomes of an appeal are not clear-cut. While an appeal could result in the ruling being overturned, it could also lead to a reaffirmation of the judge’s decision. The outcome would largely depend on the strength of the SEC’s case and its ability to convince a higher court that Judge Torres’ ruling was flawed.
Despite the risks and uncertainties, many investors remain optimistic about the future of Ripple and XRP. Ripple has established itself as a major player in the crypto world, with a growing list of partners and a commitment to driving innovation in the blockchain space. Experts predict significant growth and adoption for Ripple in the coming years.
In conclusion, while the possibility of appeals remains, Hogan’s analysis suggests that they are unlikely. The crypto community will closely watch the case unfold to see what happens next and how it may impact the future of XRP and other digital currencies.
