- Attorney Jeremy Hogan suggests a 60% chance that the SEC will appeal the court decision in the Ripple lawsuit, indicating ongoing litigation.
- Following the ruling, XRP’s price briefly surged over 20% but later faced resistance, retracing to $0.5847 with a market cap below $33 billion.
Earlier this week, District Court Judge Sarah Netburn ordered Ripple to pay the US SEC $125 million in penalty for violating securities laws with its XRP sales to institutions. However, everyone is asking whether this is the end of the long-running Ripple vs. SEC battle or if something more is coming.
Market analysts have been suggesting that the U.S. Securities and Exchange Commission is likely to appeal the decision once again, per the CNF report. Attorney Jeremy Hogan stated there’s a good 60% chance that the SEC would appeal the decision again. He wrote:
I’ve settled on a 60% chance that the SEC appeals. Judge Torres’ opinion is an outlier and no one seems to be following it yet so it doesn’t hurt the SEC as much as it might’ve. And an appeal could also of course backfire as well. But I still think a 60% chance because…the SEC doesn’t operate like a normal litigant.
In the latest ruling, Judge Torres has asked Ripple to prevent it from violating any further rules per the securities laws. Furthermore, the court has clarified that this injunction applies to Ripple’s on-demand Liquidity (ODL) service, which uses XRP as a bridge for conducting instant cross-border settlements.
Ripple and SEC Both Claim Victory
Just like the court hearing in July 2023, both parties are claiming victory this time. “This is a victory for Ripple, the industry, and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone,” noted Ripple CEO Brad Gralinghouse.
On the other hand, the SEC spokesperson stated that the court identified Ripple’s “willingness to push the boundaries” while indicating the likelihood of future violations. However, as reported by CNF, the XRP sale to institutions would remain unaffected.
It’s uncertain whether this will mark the end of Ripple’s battle with the SEC. The agency might still appeal the decision, and crypto legal experts suggest this is a likely outcome. “Expecting the SEC to appeal,” crypto lawyer Preston Byrne shared on X, noting he hadn’t anticipated a Ripple victory.
On the other hand, Ripple has continued to expand its operations globally despite being behind the United States. This might help the firm cushion the impact if the regulator decides to appeal and impose additional restrictions on Ripple’s activities in the US.
Soon after the recent ruling’s outcome, the XRP price rallied by more than 20%, shooting all the way to $0.65, per the CNF report. However, XRP has been facing rejection at those levels and has retraced to $0.5847, with its market cap dropping under $33 billion.
