Marc Fagel, an ex-SEC lawyer, disclosed the agency’s potential appeal strategy in the XRP lawsuit as the deadline for the US SEC to file an appeal.
The XRP lawsuit has been a topic of interest to investors in recent months, as the lengthy dispute was resolved in August. Nevertheless, the most recent developments suggest that the US SEC may file an appeal in the case, potentially initiating a new phase in the Ripple case. Amid this, an ex-SEC lawyer has provided valuable insights regarding the agency’s prospective appeal strategy should it continue to pursue such plans.
Potential Appeal Strategy of the US SEC in the XRP Lawsuit
The XRP lawsuit has been one of the most closely observed legal battles in crypto. In the meantime, Judge Torres resolved the protracted dispute by mandating that Ripple pay a $125 million penalty last month.
Nevertheless, the court has issued a stay order for the blockchain firm’s penalty payment.
As the October deadline approaches, there is growing speculation regarding the possibility of a US SEC appeal in the case.
Marc Fagel, an ex-SEC counsel, anticipates that the agency’s appeal strategy will prioritize disputing the determination that programmatic sales, which are sales conducted through intermediaries, are not unregistered securities offerings.
Fagel clarified in response to a recent X discussion that the appeal would not focus on penalties but rather on the legality of these sales. He emphasized that the SEC will endeavor to invalidate this portion of the ruling if it proceeds.
The probability of an appeal has been a topic of considerable discussion. James Farrell, an additional former SEC counsel, predicts that the agency will pursue an appeal in the Ripple Vs. SEC lawsuit with a 75% probability.
In the interim, the attorneys have contended that the agency’s position in future crypto-related cases could be weakened by anything less than an appeal.
XRP price is experiencing volatility
Recently, the price of XRP has been characterized by a high degree of volatility, and it is presently trading at $0.5834, a 1-4% decrease. Its trading volume decreased by 2% in the past 24 hours, reaching $992.51 million. The crypto has reached a peak of $0.5949 in the past 24 hours, which indicates the volatile nature of the market.
Nevertheless, Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have declared that the XRP lawsuit has been resolved. Furthermore, they denied any prospective appeal, which has sparked market discussions.
In the interim, some experts anticipate that the SEC may submit a final appeal as the October 7 deadline approaches.
It is important to note that a potential appeal could extend the case and impact the future of XRP in the crypto market. Additionally, many anticipate that Ripple will file a cross-appeal if the agency proceeds with its plan.
