The deadline for the United States Securities and Exchange Commission (SEC) to appeal the decision in its case against Ripple is October 7.
As the deadline approaches, FOX Business reporter Éléonore Terrett analyzed the pros and cons of the case and laid out the likely implications if the SEC did not appeal.
In a job On Tuesday, Terrett cited sources saying the likelihood of an appeal is high, given the effect the outcome of the case would have on crypto regulation in the United States.
For context, Judge Analisa Torres handed Ripple a partial victory against the SEC after ruling that sales of XRP to secondary users do not constitute an investment contract. Meanwhile, for Ripple’s violation, the judge ordered the company to pay a fine of $125 million instead of the $2 billion expected by the plaintiff.
SEC likely to appeal
According to Tuesday’s post, Terrett cited a disclosure from former SEC lawyer Marc Powers that the securities watchdog would likely appeal the Aug. 7 decision. Powers noted that the SEC would appeal the case given its implications on crypto regulation in the United States.
The former SEC lawyer said the agency and its crypto-skeptic boss, Gary Gensler, will seek to avoid the double-edged regulation that Judge Torres’ ruling will bring to the industry. He also stressed that the SEC would not want the programmatic sales decision stand.
Notably, an SEC attorney shared the same view with the Powers. At a court hearing in January, the legal representative stated that he did not agree with the segregation of primary and secondary investors established by Judge Torres. According to the lawyer, whether sold to institutions or retailers, it is the same XRP.
It is worth mentioning that the SEC attempted to call the ruling on programmatic sales was immediately issued, but the court denied the petition. Judge Torres said the securities regulator could only challenge the verdict after the final declaration.
The outcome of the case could likely influence further prosecutions
Terrett noted that the outcome of the ruling would likely influence other SEC legal battles. Proceedings regarding the SEC’s lawsuit against Binance, Coinbase, and Kraken for offering unregistered securities are still ongoing, and exchanges are closely monitoring the Ripple v. SEC case.
If the SEC did not appeal the Ripple case, these exchanges could invoke the decision in their legal dealings with the regulator. Notably, Terraform has already tried the approach but failed to make progress.
Call, a waste of resources
Meanwhile, Jeremy Hogan, a partner at Hogan and Hogan, believes the SEC’s appeal would be a waste of resources. He said the agency should not focus on winning a single asset across a broad sector.
Hogan said the best way to dissolve the programmatic sales ruling was to stick it to Coinbase and Binance. He noted that the suits against the two exchanges better addressed the issue of secondary sales and were “more relevant to current enforcement priorities.”
Notably, despite increased suggestions that the SEC would appeal the case, Ripple General Counsel Stuart Alderoty maintains that the the matter is over. He furthermore declared that the slim chances of victory in the Court of Appeal meant that America’s top regulator would fail to overturn the decision.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
