Pro-XRP Lawyer Says SEC Will Lose if It Challenges XRP’s Non-Security Status

The SEC’s ongoing legal battle with Ripple could negatively impact the price of XRP. The appeals process is expected to be lengthy, with both Ripple and the SEC gearing up for detailed arguments.

Recently, Fox Business journalist Eleanor Terrett shared excerpts from her conversation with Ripple’s Chief Legal Officer, Stuart Alderoty, on the ongoing Ripple-SEC case and the appeal process. Terrett outlined the expected timeline and steps:

• SEC’s Appeal Timeline: The SEC’s final day to file Form C, detailing its appeal plan, is tomorrow. This form will provide initial details into the SEC’s appeal strategy.
• Ripple’s Cross-Appeal: Seven days after the SEC’s filing, Ripple will submit its own Form C, laying out details of its cross-appeal.
• Briefing Schedule: Both parties will then agree on a briefing schedule. The SEC is expected to take the full 90 days allowed for its initial brief, which will present an outline of its legal arguments. Ripple will then file its response and a brief.
• Timeline for Completion: Alderoty expects the full briefing process to extend through July 2025.

Pro-XRP lawyer Fred Rispoli added clarity on the SEC’s anticipated appeal points, stating they will likely argue that Judge Torres was mistaken in her rulings on “Programmatic Sales,” “Other Distributions,” the refusal of a disgorgement order, and the “too low” $125 million penalty. The SEC might also challenge the finding that XRP itself is not a security, though it’s unlikely to win on this point.

Reacting to Fred’s tweet, former SEC lawyer Marc Fagel wrote, “Totally agree; but Crypto Twitter is abuzz as if there’s some big secret here. (I personally don’t think they argue XRP is itself a mystery; at most, the brief may argue that it’s not something that needs to be decided for liability to attach, which is surely accurate.)”