Ripple vs SEC Lawsuit Approaching October 7 Deadline Will the SEC Challenge the Ruling on XRP

The recent court ruling in favor of Ripple is likely to be appealed by the SEC, potentially causing significant delays in resolving the case. The appeal process would involve multiple courts and could take over a year to complete.

As the October 7 deadline approaches, there is speculation in the crypto community about what the SEC’s next move will be. The case revolves around whether XRP should be classified as an unregistered security, and this legal uncertainty has led to fluctuations in XRP’s value.

Crypto analyst Mr. Man recently shared insights into Ripple’s battle with the SEC. Ripple’s Chief Legal Officer, Stuart Alderoty, believes there is a strong possibility that the SEC will appeal the ruling. If the case escalates to the Supreme Court, Alderoty is confident that Ripple will prevail, solidifying its position in the cryptocurrency market.

However, legal expert Marc Fagel explained that the appeal would first go to the 2nd Circuit Court of Appeals, not directly to the Supreme Court. 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 noted that the Supreme Court often declines to hear such cases, adding more uncertainty to the timeline.

Cryptocurrency attorney Fred Rispoli believes the chances of an SEC appeal have increased. Both Ripple and the SEC have agreed to deposit 111% of the disputed amount in a trust 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 ongoing uncertainty surrounding the case.

Congressman Tim Emmer submitted Bill H.R. 4451, the Security Clarity Act, which classifies digital assets as commodities and introduces a new category called “Investment Contract Asset.” This classification is crucial for XRP, which has faced regulatory uncertainty.

Mr. Man points out that while the SEC has clarified that XRP is not a security according to the previous court ruling, it has not definitively stated what XRP is. The passage of the Security Clarity Act would provide much-needed clarity and regulatory certainty for Ripple and other digital assets, creating a more stable environment for innovation and investment in the crypto space.

With each deadline, XRP experiences volatility, and this may continue until next year if the SEC decides to appeal. The outcome remains uncertain.