According to Odaily Planet Daily, Ripple Labs Chief Legal Officer Stuart Alderoty said that as the US SEC prepares to appeal a federal judge's decision involving XRP, the agency will face another defeat.

“It’s going to backfire on the SEC,” Alderoty said. “I feel good about our case in the Southern District of New York, and I feel even better about the Second Circuit case.”

He added that when the U.S. SEC first filed suit against Ripple and two of its executives in 2020, the company publicly declared that its legal fight was “on behalf of the entire industry.”

Nearly four years later, the impact of Ripple’s legal battle on the entire industry has intensified as the case moved to the Second Circuit Court of Appeals. The decision could set a precedent in the Southern District of New York outlining how judges should apply securities laws to XRP.

In August, Judge Torres ordered Ripple to pay a $125 million fine for violating securities laws with its XRP transactions. The SEC previously claimed that Ripple had raised $1.3 billion through unregistered securities offerings since 2013 and later demanded a $2 billion fine.

While Ripple applauded Judge Torres’ ruling, which held that XRP “is not necessarily a security on its face,” other judges disagreed. The SEC has yet to indicate which parts of Torres’ ruling can be appealed, and in the meantime, Ripple has taken legal action of its own.