On Wednesday, the United States Securities and Exchange Commission (SEC) officially launched an appeal against the final decision in the case against Ripple Labs. The specific grounds for the SEC’s appeal remain unknown so far, leaving the XRP community in the dark. However, pro-XRP lawyer Bill Morgan clarified via
XRP Status in the Secondary Market is Safe
Morgan highlights the distinction between different types of sales, highlighting the nature of those that have been challenged in court. “There is some confusion in this case regarding the issue of secondary sales,” Morgan notes on
Morgan clarified that the court’s decision did not concern secondary sales. He writes: “Judge Torres did not rule on secondary sales in the sense of sales made by you and me if we go to the exchange and sell XRP to other retail investors. » He emphasizes that this particular type of transaction remains outside the scope of the remedy. “The judge made this clear in a footnote to the summary judgment decision,” adds Morgan, clarifying that “this issue has not been decided and therefore cannot be appealed “.
The scope of the SEC’s appeal, according to Morgan, is narrowly focused. “The liability appeal is limited to programmatic or other sales and distributions of Ripple,” he says. Morgan also suggests that the appeal could extend to other legal territories: “The appeal could of course extend to questions regarding penalty, injunction and restitution. »
In a recent conversation, Morgan recalled discussions with former SEC attorney Marc Fagel. “I remember we both agreed that it was very likely, although not certain, that the call would be limited to questions regarding programmatic sales and other distributions,” he said. shared, indicating consensus on the likely direction of the SEC challenge.
Meanwhile, FOX Business reporter Eleanor Terrett called attention to the procedural aspects of the appeal process via X today. She reported: “The SEC has not yet filed its Form C with the Second Circuit, which will detail exactly the grounds for its appeal. They need to do this immediately so Ripple knows how to proceed. She also noted that Ripple had a deadline for its response, stating: “Ripple also has 14 days from today to file a cross-appeal if it chooses.”
Within the legal community, there is high expectation that Ripple will respond with a cross-appeal. Morgan commented on this by simply stating: “I find it hard to believe that Ripple will not file a cross-appeal. » Fred Rispoli, founder of HODL Law, predicted via X: “The SEC is appealing. Ripple will cross-appeal. The SEC district lawsuits against Coinbase and Kraken continue. Life goes on. Don’t panic.
Notably, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty also suggested in his latest article on X that a cross-appeal was being considered, signaling ongoing strategic planning within Ripple in response to the SEC’s legal actions.
At press time, XRP was trading at $0.5281.
Featured image created with DALL.E, chart from TradingView.com
