The longest lawsuit in the crypto space, SEC vs Ripple, remains unresolved as the SEC deliberates on making an appeal within the next 10 days. In its July 2023 ruling, the court declared that not all sales of XRP were securities. Ripple was ordered to pay a fine of $125 million for institutional sales. However, the threat of an SEC appeal looms large, potentially prolonging the case.
Speculations Surrounding SEC’s Appeal Deadline
As the deadline for the SEC to appeal against Judge Torres’s 2023 ruling draws near, speculation is rife within the market. The deadline is set for October 7. A significant portion of the community believes that the SEC may refrain from appealing and thus avoid extending the case. However, opinions vary.
Many in the community speculate that the SEC might wait until the last possible moment to file an appeal, thereby extending the case until 2025. This anticipation aligns with the upcoming U.S. presidential elections in November, adding another layer of complexity to the situation.
Insights from Legal Experts
Insights from legal experts add another dimension to the ongoing debate. A Fox Business journalist shared information from her X account, indicating that a former SEC lawyer believes the SEC is likely to appeal Judge Torres’s July 2023 ruling. The ruling stated that the programmatic sales of Ripple’s XRP token were not considered securities.
Bill Morgan, a lawyer, expressed on his X account that there is a 60% chance the SEC will appeal the decision regarding programmatic sales. He also opined that the SEC might not appeal the penalty aspect of the ruling. The court had imposed a civil penalty of $125 million, while the SEC had initially sought a $2 billion penalty, and Ripple had requested it be capped at $10 million.
Political Factors Influencing the SEC’s Decision
Political factors play a significant role in the SEC’s decision-making process. The current administration’s stance could influence the SEC’s actions against Ripple. If the current administration wins the upcoming elections, the SEC might gain more leverage to pursue further actions against Ripple.
On the other hand, if a new administration comes to power, we could witness substantial changes within the Commission. Former President Donald Trump has repeatedly expressed his desire to make America a central hub for crypto innovation, and he has stated his intention to dismiss SEC Chairman Gary Gensler for his stance on innovation.
These political dynamics add to the uncertainty surrounding the SEC vs Ripple case. The crypto community eagerly awaits the SEC’s decision on whether to appeal, as well as the outcome of the presidential elections, which could shape the future of the SEC’s approach towards crypto regulation.
Amidst this ongoing legal and political turmoil, Ripple continues to expand its services. Recently, XRP has expanded its payment services in South Korea, demonstrating its resilience and commitment to growth despite the legal challenges.
