A former U.S. Securities and Exchange Commission (SEC) lawyer, who recently left the agency, has weighed in on whether the SEC will appeal District Judge Analisa Torres’ July 2023 ruling concerning the XRP programmatic sales in the Ripple lawsuit.
Fox Business reporter Eleanor Terrett shared on social media platform X last week that the lawyer told her that the regulator will “probably” appeal the XRP ruling. She quoted the lawyer as stating:
Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.
The source’s remarks come as the SEC approaches the Oct. 7 deadline to file its appeal in the Ripple lawsuit. The case has attracted widespread attention, particularly in the cryptocurrency community, as it has broader implications for how digital assets like XRP are regulated in the U.S.
The SEC’s potential appeal of the XRP ruling could influence the future of U.S. crypto regulation. The case’s outcome may have long-term implications for how the government manages digital assets and applies rules to cryptocurrencies like XRP.
The securities watchdog filed a lawsuit in December 2020, alleging that Ripple’s sales of XRP amounted to an unregistered securities offering. Ripple has denied the charges, arguing that XRP should be classified as a currency, not a security, and thus falls outside the SEC’s jurisdiction. In July 2023, District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP on public exchanges did not constitute securities transactions, marking a partial win for Ripple.
