Following Ripple’s recent legal win against the U.S. Securities and Exchange Commission (SEC), the crypto community is abuzz with speculation about possible appeals and their potential impact on XRP investors.
On July 13, Judge Analisa Torres ruled that XRP is not a security, dismissing the SEC’s longstanding allegations that Ripple had conducted an unregistered securities offering with its XRP sales. Despite this significant legal victory for Ripple, there are still concerns that the SEC may appeal the ruling.
Why An Appeal In The Ripple Case May Be A Long Shot
Jeremy Hogan, a pro-XRP lawyer, recently shared his thoughts on the possibility of appeals in the ongoing legal battle between Ripple and the SEC.
While many in the crypto community have been speculating about the potential outcomes of an appeal, Hogan suggests that the timing of the case and the nature of the ruling make an appeal unlikely.
According to Hogan, most appeals happen after the case is finished, which is not true with the Ripple lawsuit. As there is no final judgment, any appeal of Judge Torres’ Order would be an “interlocutory appeal.”
Such appeals are rarely granted, and the normal situation would be where allowing discovery would reveal information that should remain confidential.
In particular, Hogan notes that appeals are difficult to win because the appellate court will generally defer to the lower court’s ruling, especially if the lower court reviewed the entire record. In this case, Judge Torres reviewed the entire record, making it challenging for either party to overturn the ruling on appeal.
Furthermore, if the SEC were to appeal and lose, it would have to contend with the decision being followed by every Second Circuit Court (DCA). This means that the SEC’s loss could set a precedent that would be followed by all courts within the 2nd DCA, potentially limiting the SEC’s ability to bring similar cases in the future.
Hogan also suggests that Ripple is unlikely to appeal the ruling as long as it can pay the fine and the ruling does not adversely affect its business. Furthermore, the ruling favored Ripple, making the company less likely to appeal.
The secondary market sales argument is one potential issue for the SEC on appeal. The judge’s ruling may make it difficult for the SEC to argue that these sales were unregistered securities offerings.
On the other hand, If the SEC were to appeal the ruling, it would likely lead to a protracted legal battle that could last for months or even years. During this time, XRP investors would likely face continued uncertainty and potential market volatility as the case outcome remains uncertain.
However, the potential outcomes of an appeal are far from clear-cut. While an appeal could result in the ruling being overturned, it could also lead to a reaffirmation of the judge’s decision. Moreover, the outcome of any appeal would largely depend on the strength of the SEC’s case and its ability to convince a higher court that Judge Torres’ ruling was flawed.
Despite the potential risks and uncertainties, many investors remain optimistic about the future of Ripple and XRP. With a growing list of partners and a commitment to driving innovation in the blockchain space, Ripple has emerged as a major player in the crypto world, with many experts predicting significant growth and adoption in the coming years.
Overall, while the possibility of appeals remains, Hogan’s analysis suggests they are unlikely. As the case unfolds, the crypto community will watch closely to see what happens next and how it may impact XRP’s future and other digital currencies.
Featured image from Unsplash, chart from TradingView.com