Ripple Vs SEC Case: US SEC’s Only Chance of Winning Appeal In XRP Lawsuit

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of legal battles that have shaped the crypto industry. The latest development in the Ripple vs SEC case has piqued my interest, and after careful analysis, I believe the odds are stacked against the SEC if they choose to appeal Judge Torres’ ruling.

In light of new information about a possible appeal in the Ripple versus SEC legal dispute, it’s been made known that the agency intends to challenge Judge Torres’ decision on XRP with an appeal. Legal experts like John Deaton and other lawyers have weighed in on the likelihood of the SEC prevailing in their appeal concerning XRP’s programmatic sales.

Ripple Vs SEC Case: Can the Agency Win Appeal?

There’s been growing anticipation about a potential appeal by the U.S. Securities and Exchange Commission (SEC) regarding a recent case. A former SEC attorney shared with Eleanor Terrett of Fox Business that they expect the agency to likely file an appeal against Judge Analisa Torres’ decision in the Ripple vs SEC lawsuit, made in July 2023.

John Deaton, a lawyer working on behalf of approximately 75,000 XRP holders without charge, stated that judges have expressed concern over the SEC’s apparent disregard for the law. Yet, he noted that under the leadership of Gary Gensler, the agency may still choose to appeal, despite this potentially being a needless expenditure of taxpayer funds.

As an analyst, I am confident that I would argue that an appellate court is unlikely to overturn Judge Torres’ decision in applying the third prong, given her fact-specific ruling. The Securities and Exchange Commission (SEC) chose not to present any expert testimony concerning XRP holders, which was excluded in the case; however, Judge Torres did base her ruling on these specific facts.

Despite the Second Circuit Court’s potential finding that Judge Torres made an error in applying the 3rd prong, the case would still be sent back to Judge Torres. In this scenario, the SEC may face another defeat in the Ripple case, as the district court might rule that the SEC failed to establish a ‘common enterprise’.

Lawyer Points Out Only Way To Potentially Win the Case

Fred Rispoli shares John Deaton’s viewpoint that the Torres ruling could present a significant challenge for the SEC to reverse. He opines that the outcome of the Ripple case hinges heavily on the three justices chosen at random who will preside over it.

If the SEC were to have three judges biased towards them (which is unusual but could happen), it might increase their chances of winning, as stated by lawyer Rispoli. Along with him, lawyers Bill Morgan and Jeremy Hogan share this view. The sudden filing of an appeal notice by the SEC at the last minute has sparked hope among legal circles, particularly in the Ripple and XRP community, as well as other litigants facing off against the SEC in the 2nd Circuit court. Their argument could be strengthened by claiming that all subsequent sales are not considered investment contracts.

The price of XRP is expected to show an upward trend, with a current trading value of approximately $0.602. In the past 24 hours, it has climbed by 2%, and its range over that period was between $0.585 (low) and $0.610 (high). Additionally, the volume of XRP traded has grown by 21% in the same timeframe, suggesting a heightened level of trader interest. According to technical analysis, the potential price target for XRP could reach as high as $2.

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2024-09-28 12:59