Ripple Vs SEC Lawsuit Update: Oct 7 Deadline Nears – Will SEC Appeal the XRP Ruling?

As the October 7 deadline looms, the crypto community is buzzing with speculation about the SEC’s next move. The case, which centers on whether XRP should be classified as an unregistered security, has caused significant fluctuations in XRP’s value, driven by the ongoing legal uncertainty.

What can you expect in the days ahead/

Key Insights from Experts

In a recent post on X, crypto analyst Mr. Man shed light on crucial developments in Ripple’s battle with the SEC. According to Stuart Alderoty, Ripple’s Chief Legal Officer, there’s a strong possibility the SEC will appeal Judge Torres’ ruling, which determined that XRP is not a security under certain conditions. This appeal could significantly impact Ripple and the broader crypto market.

Alderoty remains confident that Ripple will prevail if the case escalates to the Supreme Court, which would solidify the company’s position as a key player in the cryptocurrency space.

Appeal Could Take Time—And It Might Not Reach the Supreme Court

However, prominent legal expert Marc Fagel responded to Mr. Man’s post, explaining that the appeal would first go to the 2nd Circuit Court of Appeals, not directly to the Supreme Court. He noted that this process could take up to 10-11 months. After the 2nd Circuit’s ruling, an appeal to the Supreme Court could be made, but Fagel emphasized that the Supreme Court often declines to hear such cases, adding another layer of uncertainty to the timeline.

So, Is an Appeal Likely?

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.

• Also Read :
•   XRP News Today: John Deaton Exposes SEC Misconduct in Ripple vs SEC Lawsuit
• ,

What Next for XRP?

Mr. Man points out that while the SEC has clarified what XRP is not 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?