Ripple Vs SEC Update: Former SEC Attorney Explains Why SEC Appeal Is Necessary
Anjali Belgaumkar1 Oct 20242 min read
The SEC is potentially preparing to appeal Judge Torres’ ruling on XRP, sparking debate among legal experts. The decision, issued in July 2023, ruled that XRP is not a security in secondary market sales—a significant win for Ripple. However, the SEC, led by Chair Gary Gensler, plans to challenge this outcome, specifically questioning the application of the Howey Test, a legal standard used to determine if transactions qualify as investment contracts.
Legal experts remain divided on the success of the SEC’s appeal. Attorney John Deaton, who represents XRP holders, believes Ripple could still emerge victorious even if the case is sent back to Judge Torres. Others argue that the appeal’s outcome may depend on the composition of the judicial panel.
Marc Powers, a blockchain professor at the Florida International University College of Law and former SEC enforcement attorney, had a different opinion. He told Fox Business, “I believe the SEC will appeal. I would think it would not want to have the programmatic trading analysis stand. It creates inconsistency in rulings by district court judges and in the Second Circuit.”
Ripple Vs SEC Could Extend To 2025-26
On the Good Morning Crypto show, attorney Fred Rispoli explained that if the SEC appeals the XRP ruling, it will be a slow process. After the SEC files the appeal, the court will set a schedule for briefs, likely starting in November or December 2024. After that, oral arguments will be heard, but the court could take between three months to a year to make a decision. Rispoli estimates the earliest a final ruling could be expected is sometime between January and April 2026.
Despite the legal battle, XRP’s price has recently surged by 2%, driven by renewed investor interest. Market analysts are optimistic, predicting that XRP could potentially reach $1 in the near future. However, ongoing legal uncertainties keep the market volatile.
