What the SEC Is Appealing in the XRP Lawsuit

Ripple vs. SEC Case: What the U.S. SEC Is Appealing in the XRP Lawsuit

Key Developments in the Ripple vs. SEC Case

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has taken a new turn, with the SEC filing an appeal. According to recent reports, the SEC plans to challenge the $125 million penalty imposed on Ripple in the XRP lawsuit.

Fox Business journalist Eleanor Terrett revealed that the SEC has not yet submitted its official Form C with the Second Circuit Court of Appeals. This form would clarify the specific issues the SEC wants to contest, leaving the XRP community uncertain about the regulator’s next move. Legal experts expect a decision from the 2nd Circuit no sooner than 2026.

SEC Appeals Court-Ordered Penalty

In the appeal notice, the SEC referred to the final judgment issued on August 7, but it didn’t specify what aspects of the case are being contested. The XRP community remains unclear about whether the SEC will challenge the ruling on Ripple’s programmatic sales from July 2023 or focus solely on the $125 million penalty related to institutional sales.

Court filings indicate that the SEC is appealing the penalty judgment. Ripple had agreed to pay this amount, but the SEC had originally sought a much larger fine—$2 billion. The regulator’s dissatisfaction with the lower penalty likely prompted this appeal.

Next Steps for Ripple and the SEC

Fox Business also reported that the SEC is under pressure to file its Form C, which would offer more details about the appeal and provide Ripple with clearer guidance. If the SEC fails to act swiftly, it could delay the case further. Ripple, meanwhile, has a 14-day window to file a cross-appeal if it chooses to do so.

As the case progresses, Ripple’s legal team and the broader XRP community are keeping a close watch on the next steps. Some lawyers believe that a settlement could be reached, which would cancel the need for a prolonged appeal process. However, without a settlement, the case might not conclude until early 2026.

XRP Price Impact and Market Reaction

Following the SEC’s appeal, XRP has faced significant selling pressure. The cryptocurrency’s price has dropped over 15% since the notice of appeal was filed. As of now, XRP is trading at $0.52 with a market cap of $29.7 billion. Investors are watching the case closely, as the final outcome could impact the future value of the digital asset.

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