The U.S. Securities and Exchange Commission (SEC) has filed an appeal challenging Judge Torres’s ruling from July 2023, which favored Ripple by clarifying that XRP does not classify as a security for programmatic sales.
The appeal is now with the U.S. Court of Appeals, leading to fresh speculation about the possibility of a settlement between Ripple and the SEC during the 14-day appeal window.
An XRP enthusiast shared on social media platform X that the SEC might be pushing for a higher penalty than the original $125 million. However, former SEC lawyer Marc Fagel dismissed this notion, stating that the appeal isn’t about the penalty.
Will Sec and Ripple take Settlement approach
He emphasized that there’s no realistic basis for a settlement, pointing out that the SEC had pursued an interlocutory appeal a year ago regarding programmatic sales, showing their consistency on the issue.
Attorney Bill Morgan provided additional clarity, stating that the SEC has only filed a notice of appeal, not a formal one yet. This leaves room for potential negotiations between the SEC and Ripple. Morgan noted that while settlement is technically possible within the 14-day window, the ideological gap between the two parties makes it unlikely.
There is also speculation that Ripple may file a cross-appeal, possibly challenging the court’s ruling on institutional sales. Both parties have significant issues at stake, but whether a settlement can be reached remains uncertain.
