XRP Lawsuit Enters Final Round, What to Expect?

The Ripple SEC Case has been on the investors’ radar lately, with many anticipating a potential appeal from the US SEC in the legal battle. With the lawsuit entering the final phase, speculations are mounting over an extended legal battle between the two parties. Amid this, ex-SEC lawyers said that an appeal is likely by the agency, while many have put their bets on a re-appeal by the firm if the SEC moves ahead with its plan.

Ripple SEC Case Enters Final Round

The Ripple SEC Case was one of the longest legal battles in the crypto world, which has gained notable attention from the broader digital assets sector. Last month, Judge Torres ordered the blockchain firm to pay a penalty of $125 million to the agency, concluding the battle. Notably, many have seen this move as a partial win for the firm, given the initial demand of $2 billion in penalty by the US SEC.

However, soon after the order, speculations have soared over a potential by the SEC appeal in the XRP lawsuit. Simultaneously, many are anticipating a re-appeal by the blockchain firm, if the agency agrees to move ahead with its appeal plan.

Most recently, Ripple has received a stay order for its penalty payment to the US SEC, after both the parties have come to an agreement for a delay. This has also sparked discussions if both parties are gearing up to extend the ongoing legal battle.

Ex-SEC Lawyers Predicts A Potential Appeal

Ex-SEC lawyers Marc Fagel and James Farrell said that an appeal is likely in the Ripple SEC case, triggering discussions. In a recent social media post, James Farrell predicts a 75% chance of an SEC appeal on liability portions.

In the latest X conversation, Farrell clarified that the SEC won on institutional sales but lost on secondary market sales and used XRP for payments. The appeal’s timing, within 70 days of filing, is likely due to the administrative process rather than strategy.

Meanwhile, Farrell notes that filing later may not provide an advantage, as SEC staff will then require Commission approval.

What’s Next In XRP Lawsuit?

The XRP community is cautiously optimistic, but an appeal could prolong the Ripple SEC case. A final decision will significantly impact XRP’s regulatory status and the broader crypto market.

Notably, pro-XRP lawyer Fred Rispoli said that the agency might not come to a decision for an appeal while saying that a last-minute decision is likely. However, Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have shrugged off concerns, denying any intention to extend the XRP lawsuit.

Meanwhile, Fred Rispoli has previously questioned whether the firm would be entitled to statutory interest if it wins an appeal, potentially forcing the SEC to return the $125 million penalty plus interest. Commenting on that, James Farrell said that the SEC might also cover appeal costs and bond payments if the firm wins the extended battle.

This development adds complexity to the Ripple SEC case, especially if the firm decides to cross-appeal, challenging the court’s decision on institutional sales and On-Demand Liquidity transactions. With the SEC’s appeal deadline looming in October 2024, the stakes are high, and the outcome will significantly impact the crypto market.

XRP price has noted volatile trading lately and is currently traded at $0.5866. Its trading volume was down 11% to $928.86 million, and it has touched a high of $0.5908 in the last 24 hours. Furthermore, XRP Futures Open Interest was up 1%, indicating a positive sentiment in the market.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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