Ripple and SEC Could Reach a Verdict During 14-Day Appeal Window
The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to evolve as the SEC has officially filed an appeal against the July 2023 ruling. This appeal challenges Judge Torres’ decision, which found that Ripple’s XRP token sales through exchanges did not violate U.S. securities laws. As both sides prepare for the next steps, speculation grows over whether the case could end in a settlement during the 14-day appeal period.
What Is the SEC Challenging?
The SEC’s appeal focuses on Judge Torres’ verdict regarding programmatic sales of XRP. In her July ruling, she determined that these sales do not classify as securities under U.S. law, meaning Ripple’s public sales of XRP didn’t require the same regulations applied to securities. However, the SEC remains firm in its stance, seeking to challenge these specific parts of the ruling in court.
Will There Be a Settlement?
Amid the legal maneuvering, some in the XRP community believe that a settlement could be reached soon. One XRP enthusiast on X suggested that Ripple and the SEC might strike a deal within the 14-day window following the SEC’s “Notice of Appeal.” The theory is that the SEC is pushing for a larger financial settlement than the original $125 million penalty imposed on Ripple.
In this scenario, Ripple would agree to pay more, but XRP’s status as a non-security would remain untouched. This would allow Ripple to move forward without further legal battles over its programmatic sales.
Legal Experts Are Not Convinced
Despite the optimism in some corners, legal experts like former SEC lawyer Marc Fagel are skeptical about the likelihood of a quick settlement. Fagel clarified that the appeal is not about increasing the penalty but rather about the SEC’s ongoing concerns over the legal classification of XRP.
He also pointed out that this is not the first time the SEC has used this strategy, referencing a similar interlocutory appeal filed previously over programmatic sales. In his view, while settlement is theoretically possible, there is no substantial foundation for predicting one in this specific case.
Could Talks Lead to an Agreement?
Interestingly, another legal voice, attorney Bill Morgan, noted that the SEC’s filing is just a “Notice of Appeal,” not a formal appeal yet. This means there could still be room for further negotiations between Ripple and the SEC before the case moves forward to a full appellate hearing.
Morgan’s comments suggest that both sides could potentially explore further discussions, opening the door to a settlement. Still, whether these talks result in a resolution before a formal appeal remains to be seen.
What’s Next?
As the 14-day window progresses, the future of this high-profile legal dispute hangs in the balance. A settlement would end years of uncertainty for Ripple and its XRP token, allowing the company to move ahead without ongoing regulatory pressures. For the SEC, a larger financial settlement could mark a significant win while sidestepping further courtroom battles.
However, if no settlement is reached, the case will move forward with the appeal, keeping the legal status of XRP at the center of attention. Regardless of the outcome, this case is likely to set a precedent for how other cryptocurrencies are regulated in the U.S.
The next few days will be crucial in determining whether Ripple and the SEC can find common ground or if this legal fight will drag on through the courts.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. The views expressed are those of the author and not necessarily those of CryptoInsider. Readers are encouraged to conduct their own research before making any financial decisions.
