As the October 7 deadline approaches, anticipation surrounding the SEC’s potential appeal is intensifying. This case, which focuses on whether XRP is an unregistered security, has led to fluctuations in XRP’s value due to market uncertainty.
Experts Weigh in on SEC Appeal Odds
In a recent X post, Crypto analyst Mr. Man highlighted crucial developments concerning Ripple and the ongoing legal battle with the SEC. According to insights from Stuart Alderoty, Ripple’s Chief Legal Officer, it appears likely that the SEC will appeal the decision made by Judge Torres, who previously ruled that XRP is not a security under certain conditions.
This anticipated appeal, if it occurs, would escalate the matter to the Supreme Court. Alderoty expresses confidence that Ripple will secure a win at this higher level, further solidifying its position in the cryptocurrency market.
Clarifying the Appeal Process
Marc Fagel, in response to Mr. Man’s post, clarifies that if the SEC files an appeal, it would go to the 2nd Circuit Court of Appeals rather than directly to the Supreme Court. He notes that this process would likely take another 10 to 11 months. After the 2nd Circuit’s decision, there would be an option to appeal to the Supreme Court, but Fagel points out that the Supreme Court is not obligated to accept the case and often declines to do so. This highlights the potential length and complexity of the legal proceedings ahead.
Prominent cryptocurrency attorney Fred Rispoli has weighed in on the situation, noting that the chances of an SEC appeal have increased. He pointed out that both Ripple and the SEC have agreed to deposit 111% of the disputed amount in a trust, which will be held until 30 days after the October 7 deadline or until the appeal is resolved. Rispoli estimates a 60:40 likelihood of the SEC moving forward with an appeal, highlighting the uncertainty that continues to loom over the case.
The Significance of Bill H.R. 4451
In the 2021-2022 session, Congressman Tim Emmer submitted Bill H.R. 4451, the Security Clarity Act. The bill classifies digital assets as commodities and creates a new category called “Investment Contract Asset.” This categorization is essential because it directly affects XRP, which has experienced massive regulatory uncertainty.
Regulatory Clarity for XRP
Mr. Man points out that while the SEC has clarified what XRP is not—a security in the context of the previous court ruling—it has yet to definitively state what XRP is. The passage of the Security Clarity Act would provide much-needed clarity and regulatory certainty for Ripple and other digital assets, fostering a more stable environment for innovation and investment in the crypto space.
With every deadline, XRP bursts like a bubble and this may go on till next year if the SEC chooses to appeal, what do you think?
