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Will the SEC Appeal Ripple’s Victory? Breaking Down the Odds

DailyCoinDailyCoin2024/08/28 14:24
By:DailyCoin
  • The SEC’s defeat in the Ripple case has shaken the crypto industry.
  • Recent court rulings have bolstered Ripple’s argument against the SEC.
  • The SEC is facing a looming deadline to decide whether to appeal the ruling.

The crypto world has been holding its breath for years as Ripple Labs has grappled with the U.S. Securities and Exchange Commission (SEC) in a legal showdown that has far-reaching implications for the industry. The SEC’s recent decision in favor of Ripple, declaring XRP a currency rather than a security, sent shockwaves through the crypto community.

However, the battle is not over. The SEC still has the option to appeal the ruling, and the crypto industry remains on edge, anxiously awaiting the agency’s next move. As the case progresses, the outcome will likely shape the future of cryptocurrency regulation in the United States and beyond.

Court Rulings Bolster Ripple’s Case Against SEC

Recent rulings in similar cases, such as the SEC v. Payward Inc. ( Kraken ) case, have introduced new legal reasoning that could shape the SEC’s strategy. Judge Orrick, who presided over the Kraken case, aligned his judgment with the legal framework used by Judge Torres in the Ripple case and Judge Jackson in the Binance case. 

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These decisions have collectively established a precedent by distinguishing between primary and secondary market transactions, applying the Howey test consistently across these scenarios. This alignment could make it difficult for the SEC to argue that Judge Torres’ ruling in the Ripple case was legally flawed.

Furthermore, Judge Orrick’s endorsement of Judge Torres’ application of the Howey test, particularly regarding whether investors expect profits from others’ efforts, complicates the SEC’s position. Judge Orrick commended Judge Torres for tailoring her judgment to the specific circumstances of the Ripple case, ensuring it was consistent with existing legal precedents.

SEC to Appeal Ripple Ruling? Election Adds Twist

The agency faces a critical decision as the SEC’s 60-day appeal window approaches its October deadline. An appeal could extend the Ripple case well into 2025, creating prolonged uncertainty in the cryptocurrency market. 

The SEC must also consider the potential impact of the upcoming U.S. presidential election on the case, adding another layer of complexity to its decision. With a closed SEC meeting scheduled for August 29, all eyes are on the agency to see whether it will appeal the Ripple ruling. 

On the Flipside

  • Despite the recent rulings, the broader regulatory landscape for cryptocurrencies remains uncertain, and the SEC’s appeal could further exacerbate this uncertainty.
  • Even if the SEC loses its appeal, it could still pursue other regulatory actions against Ripple or other crypto companies.

Why This Matters

The SEC’s decision on whether to appeal the Ripple ruling could set a decisive precedent for how cryptocurrencies are regulated. This could potentially influence the legal landscape for years to come and affect the strategic decisions of crypto projects and investors alike.

To learn more about the potential impact of Ripple’s On-Demand Liquidity (ODL) network on XRP prices, read here:
How Ripple’s ODL Expansion Could Catalyze XRP’s Price Surge

For more information on Ripple’s defense of Kraken against the SEC lawsuit, including the SEC’s allegations and the ongoing legal battle, see this article:
Ripple Defends Kraken Against SEC Lawsuit as Court Case Proceeds

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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