The courtroom battle between the U.S. Securities and Exchange Commission (SEC) and blockchain payments firm Ripple Labs finally got a $125 million final ruling earlier this month, ending the long-running case that began around December 2020. Now, the question in the minds of many is whether the SEC will choose to appeal.
Ripple’s chief legal officer, Stuart Alderoty, has addressed the possibility of an appeal by the SEC, suggesting that the regulatory agency has just a 10% chance of prevailing in a possible appeal.
Stuart Alderoty On Potential SEC Appeal Of Final Ripple-SEC Ruling
In his latest interview, Ripple’s CLO Alderoty noted that the Securities and Exchange Commission has at least 60 days to file an appeal. However, he stressed that he wouldn’t advise an appeal if he were working with the SEC.
“If the SEC were a rational actor, they should just move on from this case,” Alderoty stated, recalling that the court found there were no victims or fraud in the XRP case.
**XRP Community!** Here’s the scoop: @s_alderoty hints at a 10% chance of the SEC winning on appeal if they choose. Ripple will pay the fine, we’re looking at a resolution within 24 days. **Bullish vibes** – let’s get this party started! #XRP #LFG pic.twitter.com/ZYH3X6m2jM
— Brett Hill (@Brett_Crypto_X) August 15, 2024
But considering the SEC’s past enforcement actions, the agency is far from rational, Alderoty opined. The attorney indicated he wouldn’t be surprised if the SEC challenged the ruling. However, he believes the regulatory commission would have a long road, given the U.S. Court of Appeals for the 2nd Circuit overturns decisions from district court judges less than 10% of the time.
Alderoty stated that the court’s ruling stands that XRP is not a security and that the secondary market trading of the token does not qualify as a security transaction under current law, regardless of an appeal.
XRP ETFs On The Horizon?
The crypto industry is humming with speculations of potential approval of spot exchange-traded funds (ETFs) following the conclusion of the Ripple-SEC case. The ruling offers legal clarity to XRP, which several other altcoins don’t have, thus increasing the odds of asset managers filing applications to list funds that directly hold the token.
British multinational bank Standard Chartered foresees XRP and Solana (SOL) being the next coins to win a green light for the ETF treatment from the Securities and Exchange Commission.
That being said, the court ruling solidly in Ripple’s favor could further boost XRP’s validity and acceptance among major banks and financial institutions.
As of press time, XRP is trading for $0.56, a +1.7% change over the past 24 hours.
