The US SEC may be required to pay Ripple a sum exceeding the $125M penalty if the XRP lawsuit appeal is unsuccessful.
Fred Rispoli, a lawyer, has recently rekindled discussions regarding the possibility of an appeal in the XRP lawsuit in a recent X post. The lawsuit has taken a new direction, with discussions escalating regarding the potential financial repercussions for the US SEC in case of a loss on appeal.
The recent controversy, initiated by pro-XRP counsel Fred Rispoli, has prompted inquiries regarding whether the SEC would reimburse Ripple with a mere $125 million in penalty or an additional statutory interest payment.
Potential Consequences for SEC in the Event of Loss in the XRP Lawsuit Appeal
The XRP lawsuit has been one of the most prominent patterns in the crypto market. Judge Analisa Torres recently ordered Ripple to pay a civil penalty of $125 million after determining that the firm’s 1,278 institutional sale transactions violated securities laws.
Nevertheless, many individuals in the crypto market perceive this as a partial victory for the blockchain company, particularly in light of the previous year’s decision that XRP is not a security. The current discussions have shifted to the prospective appeal by the US SEC and a cross-appeal by the blockchain payment firm.
In the interim, the prospect of an appeal has regained momentum, particularly in light of a critical inquiry posed by pro-XRP attorney Fred Rispoli. In an X post, he inquired whether the SEC would be required to refund the $125 million penalty and pay statutory interest if Ripple wins an appeal on all issues.
James Farrell, a former counsel for the Securities and Exchange Commission (SEC), stated that the SEC may be required to cover the costs of the appeal if the firm prevails. Additionally, specific legal requirements may require the agency to pay additional fees, such as the surety payment.
Furthermore, Farrell emphasized that the case could be retried, which could result in additional legal disputes, adding a layer of complexity. This emphasizes the potential financial risks and uncertainty if the blockchain firm elects to cross-appeal and contest the court’s decision regarding institutional sales and On-Demand Liquidity (ODL) transactions.
Potential Appeal and Its Influence on Ripple & The SEC
For months, there has been speculation regarding the possibility of an SEC appeal. The US SEC is expected to appeal the ruling, with a particular emphasis on the court’s decision regarding disgorgement, according to legal experts such as MetaLawMan.
Furthermore, he stated that Ripple may file a cross-appeal, contending that the court’s ruling on institutional transactions was flawed. The blockchain payment firm may argue that these transactions do not satisfy the criteria of an investment contract under the Howey test.
This argument, if successful, could have far-reaching implications for other crypto cases, such as Binance and Coinbase, and could further undermine the SEC’s position. Furthermore, it has prompted debate regarding the possibility of a recommenced conflict in the recently concluded XRP lawsuit.
As of this writing, the price of XRP had increased by approximately 2% to $0.593, while its trading volume remained at approximately $1.08 billion. It is worth noting that a recent XRP price prediction indicates that the cryptocurrency may eventually reach $0.74 if specific conditions are satisfied.
