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In the cryptocurrency sector, prominent attorney Fred Rispoli recently indicated that the chances of an appeal in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) have risen. The statement follows Ripple's move to request a stay on the monetary portion of Judge Analisa Torres' final judgment issued on August 7.
Ripple’s Recent Legal Maneuver
Ripple recently reached an agreement with the SEC to transfer 111% of the penalty amount, totaling $138.75 million, to the account of its legal team. According to the arrangement, the funds will be held and released 30 days after the deadline for filing an appeal notice or the resolution of an appeal. This step is seen as a precautionary measure amid uncertainties surrounding a potential appeal.
Increased Appeal Odds
Reacting to Ripple’s legal maneuver, Attorney Fred Rispoli suggested that the likelihood of an appeal has increased, although it does not confirm that an appeal will be filed. Rispoli pointed out that the arrangement might reflect uncertainty regarding the SEC’s intentions, as the agency has not confirmed its plans to appeal the case.
Rispoli noted that the SEC’s position remains unclear, leading Ripple to take precautionary steps. He emphasized that although an appeal is not guaranteed, the recent developments in the lawsuit have significantly raised the prospects of one occurring.
Speculation on Potential Appeals by Both Parties
The possibility of an appeal has been a topic of discussion among crypto enthusiasts since the final judgment was released. Speculation has centered on whether both parties, particularly the SEC, will pursue an appeal. Legal expert James Murphy previously cited two reasons that could motivate the SEC to appeal: concerns related to disgorgement and the court's decision on XRP's programmatic sales.
The court had denied the SEC's disgorgement request, as the agency failed to prove that XRP investors had suffered financial harm. Additionally, the SEC did not prevail in the summary judgment concerning XRP (XRP) programmatic sales. According to Murphy, these rulings could have broader implications for other crypto-related cases filed by the SEC, which might prompt the agency to seek an appeal.
There is also speculation that Ripple could appeal the injunction imposed on its future XRP sales to institutional clients. Ripple’s response to the monetary portion of the judgment, while not addressing the injunction aspect, has further fueled expectations of a possible appeal.
Awaiting Official Decisions
As of now, neither Ripple nor the SEC has officially filed an appeal notice. Attorney Jeremy Hogan commented on the situation, noting that the SEC has not yet made a decision regarding an appeal. Hogan explained that the appeal process would involve a relatively straightforward filing of an appeal notice, which can be completed in about 15 minutes. However, the SEC would then have 70 days to submit the detailed appeal brief. This same timeline would apply to Ripple if it chooses to appeal.
The broader crypto community is closely watching developments to see if the case will advance to the Second Circuit Court of Appeals. With both parties having approximately one month remaining to file an appeal notice, attention is focused on their next steps.
