In August, Ripple’s long-running legal battle over XRP saw a major development. However, with the U.S. Securities and Exchange Commission (SEC) likely to appeal, a new chapter may begin. Former SEC attorneys shared details into the agency’s potential appeal strategy, focusing on programmatic sales and their classification as unregistered securities.
Fox Business journalist Eleanor Terrett took her X handle and revealed that a former SEC lawyer who recently left the agency says the SEC will “probably” appeal Judge Torres’s July 2023 ruling on XRP programmatic sales in the Ripple case. According to him, many at the SEC believe the ruling is wrong, bad law, and should be appealed.
She added, “Going to do a deeper dive into the SEC’s options and what we could see as we near the October 7th appeal deadline.”
Judge Analisa Torres ruled on July 13, 2023, that Ripple’s direct sales of XRP to institutional investors (Institutional Sales) were considered securities transactions, while sales on digital asset trading platforms (Programmatic Sales) were not.
The XRP community had mixed reactions to the latest development. Attorney Jeremy Hogan said that, “Of COURSE they think the opinion is wrong – they were on the losing side. What the SEC SHOULD be thinking of right now is whether an appeal furthers its mandate of investor protection and capital formation. Why isnt that top of mind? More evidence the SEC has lost the plot.”
For the unversed, Stuart Alderoty, Ripple’s Chief Legal Officer, recently announced the end of this four-year conflict, with the SEC even apologizing for mischaracterizing XRP. The SEC has not yet confirmed if it will appeal the recent rulings in the SEC vs. Ripple case. Both Ripple and the SEC have a 60-day window to file appeals, with the deadline set for October 7, which is 60 days after the final judgment.
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