Is the $105M Judgment at Risk After Ripple’s Appeal in XRP Lawsuit?

Recently Ripple has officially filed an appeal in its long-running legal showdown with the U.S. SEC, taking the case into a crucial phase. Attorney Jeremy Hogan, a key figure following the case, highlighted Ripple’s four main arguments, which could impact not just Ripple but the entire crypto industry. The appeal comes after the SEC challenged Judge Analisa Torres’ August ruling that Ripple’s XRP sales on retail exchanges did not violate federal securities laws.

The SEC continues to argue that Ripple’s XRP sales, as well as distributions to employees and executives, should be classified as securities transactions. Ripple, however, is pushing back hard, particularly on the SEC’s broad interpretation of what constitutes an “investment contract.”

This is going to be a battle of regulations vs innovation if Ripple wins crypto will see a bigger change in the current unfair and manipulative practices by the SEC.

What Ripple is Fighting For?

Ripple is questioning whether an “investment contract” must legally be a contract—an argument that could potentially shake the SEC’s entire enforcement approach. According to Hogan, this move is aimed at benefiting the broader crypto space, though Ripple is still liable for a hefty $105 million judgment.

Additionally, Ripple is revisiting the question of whether XRP qualifies as an “investment contract” at all, allowing them to challenge the Howey test. The company is also reviving its “Fair Notice Defense,” claiming they weren’t adequately warned that their XRP sales could breach securities laws. Lastly, Ripple is challenging the court’s vague injunction ordering them to “follow the law,” which they argue is too ambiguous.

Ripple’s Chances of Winning?

When asked about Ripple’s odds, Hogan estimates there’s an 80% chance the appeal will leave Ripple in a better position than it is now. However, he noted that in complex cases like this, “winning” and “losing” aren’t always black and white.

Ripple’s last-minute filings may indicate internal shifts or recalibrations in strategy. While this could be a strategic play, prolonged legal battles can drain resources and distract Ripple from its core innovations. As the lawsuit drags on, market volatility may persist, potentially affecting investor confidence in XRP.