Ripple Legal Battle Continues: Former SEC Lawyer Predicts Appeal

A former attorney from the U.S. Securities and Exchange Commission (SEC) has predicted that the agency will likely appeal the Ripple case, according to a report from Fox Business journalist Eleanor Terrett. The anticipated appeal focuses on the controversial July 2023 ruling, which determined that secondary sales of XRP do not qualify as securities. The former lawyer, cited by Terrett, mentioned that the majority within the agency believe that U.S. District Judge Analisa Torres made an incorrect decision.

🚨NEW: A former @SECGov lawyer who recently left the agency tells me the SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the $XRP programmatic sales in the @Ripple case partly because: “everyone over there [at the SEC] truly believes that the decision is…
— Eleanor Terrett (@EleanorTerrett) September 26, 2024

Controversy Surrounding the July 2023 Ruling

The ruling in question has attracted widespread criticism, with the U.S. District Judge Jed Rakoff opposing the notion that how tokens are sold should determine whether they are securities. This division in legal interpretation has sparked discussions within the legal and crypto communities regarding the future regulatory landscape for digital assets.

Since the final judgment in the Ripple case, speculation has increased over what the SEC will do next. Many anticipate that the SEC will file an appeal before the deadline, which is October 7. Ripple’s chief legal officer, Stuart Alderoty, indicated that while he expects an appeal from the SEC, he remains confident that the legal standing of XRP will remain unchanged. Alderoty emphasized that the current ruling is “the law of the land.”

Uncertainty Over Token Classifications

Meanwhile, SEC Chair Gary Gensler recently reiterated that Bitcoin should be classified as a commodity. However, the legal status of most other cryptocurrencies remains in limbo. The unresolved regulatory framework for digital assets continues to generate uncertainty for the industry.

Earlier this month, attorney Fred Rispoli advised the XRP community not to worry about a potential SEC appeal.

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He argued that the existing ruling is unlikely to be overturned before 2026, suggesting that any significant changes in the legal interpretation of XRP will take time to unfold.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.