Why SEC’s Appeal of the Ripple Lawsuit Could Backfire, Erode Authority

Renowned attorney Jeremy Hogan has dropped a bombshell on the Ripple case, warning that the SEC’s decision to appeal the programmatic sales ruling could be a major miscalculation. With the crypto world watching closely, Hogan believes this move could not only backfire for the SEC but also weaken its grip on the broader cryptocurrency market.

But the big question remains: Will the SEC succeed in its appeal, or is this an attempt to undermine XRP?

Risky Bet with Little Reward

According to Hogan, the SEC is taking a huge risk by appealing. Even if they win, the only benefit would be more money from Ripple, without achieving their main goals of protecting investors or providing clearer regulations.

“It will get more money from Ripple and have protected no one,”

In his view, a win would be superficial, leaving XRP’s use by Ripple unchanged.

Ripple’s “Blue Sky” Defense: A Major Threat to the SEC?

Hogan also points out that Ripple might use the “Blue Sky” laws—a set of state securities rules that existed before federal laws. If Ripple succeeds with this strategy, Hogan warns, the SEC’s ability to regulate the entire crypto space could be severely weakened. “The SEC’s ability to regulate the entire crypto space is essentially destroyed,” Hogan said. This could make the SEC’s appeal a high-risk, low-reward move.

Hogan argues that the SEC is likely to lose this appeal. He explains that the original ruling was based on detailed facts, making it tough to overturn. Even if the SEC wins, Ripple might only face higher fines, with no real impact on XRP’s use or status.

Long Timeline for Resolution

For those hoping for a quick outcome, Hogan offers a grim timeline. He now believes that the final ruling from the appellate court might not come until late 2025 or even early 2026. Initially, Hogan expected a decision by summer 2025 but now thinks the process will take longer. This means XRP could remain in legal uncertainty for years.

Hogan also pointed out the recent resignation of Gurbir Grewal, the SEC’s enforcement chief, on the same day the appeal was filed. Hogan hinted this timing may not be a coincidence. He suggested leadership changes at the SEC could speed up the case and even joked that if Trump were elected, the SEC might refocus on issues like scams and fraud.

In this high-stakes legal battle, the SEC’s appeal is a risky move, and its outcome could have a lasting impact on the future of crypto regulation in the U.S.

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