The post Ripple Lawsuit News : Can XRP’s Security Classification Be Challenged on Appeal? appeared first on Coinpedia Fintech News
The ongoing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) appears far from over. Legal expert Fred Rispoli recently suggested that the likelihood of an appeal in the case has increased significantly. This development follows Ripple’s August 7 request to postpone the payment of a $125 million fine to the SEC within 15 days, signaling that the battle might continue.
Is XRP in status in trouble again? Let’s find out the odds.
Ripple’s Extension Request and Fine Deposit
Initially, Ripple had 30 days to settle the fine, but the company has sought an extension, potentially to prepare for an appeal. To accommodate this, Ripple has proposed to deposit 111% of the fine amount—around $139 million—into a bank account. This deposit will remain there until 30 days after the appeal period expires or any appeal case reaches a resolution.
SEC Agrees to Stay, Investor Uncertainty Grows
The SEC has agreed to Ripple’s request for a stay, which means the legal fine is temporarily on hold. However, this move has left XRP investors uncertain. While the extension isn’t a direct confirmation that Ripple will appeal, it raises concerns about a prolonged legal saga. The SEC has until mid-October to decide whether it will pursue an appeal, leaving the crypto world on edge.
Now the question is, Will SEC, Trouble XRP Status?
Hello, my music friend, not so friendly to the XRP community. Can I bother you with this question?Can the SEC appeal that XRP is a security?In Meta Law Man's interview with Digital Perspective, he mentioned three potential grounds for the SEC's appeal against Ripple.The…
— CryptoView (@cryptoview_1) September 8, 2024
The question of whether the SEC can appeal the classification of XRP as security remains a hot topic in the cryptocurrency space. Recently, Meta Law Man discussed potential grounds for an appeal against Ripple in an interview on Digital Perspective. CryptoView, a crypto trader has raised concerns about these grounds, particularly focusing on a key point mentioned by renowned attorney Jeremy Hogan.
Hogan has argued that XRP’s classification as a security in the summary judgment is considered dicta—essentially commentary that is not binding or subject to appeal. Additionally, the SEC had acknowledged to Judge Torres that XRP is not a security in itself. In response, Stuart Alderoty, Ripple’s General Counsel, has also stated that XRP and secondary sales on exchanges are not likely to be involved in the appeal.
Legal Process and Potential Appeals
OGC-Sky, an X user expressed concern that the SEC might use the payment as a tool to initiate a new lawsuit, potentially dragging the case out further. Marc Fagel addressed this by explaining that if an appeal is filed, the case would be moved to the Court of Appeals. This court generally takes about 10-11 months to issue a ruling, which could either uphold the lower court’s decision or send the case back for additional proceedings.
Will the SEC play fair with its crypto playbook? Let’s wait and see.
