Washington, D.C. – As the January 15 deadline nears for the U.S. Securities and Exchange Commission (SEC) to file its appeal brief in the Ripple lawsuit, speculation mounts surrounding the regulator’s next move. The SEC already took a significant step by filing a notice of appeal against the ruling from Judge Analisa Torres on August 7, which has stirred the crypto community.
On October 2, the SEC echoed its intentions by appealing the previous ruling, further filing a detailed Form C mid-October, outlining its arguments for the appeal. The main issues highlighted by the SEC include XRP’s sales on exchanges, distribution processes to Ripple employees, and transactions by co-founder Chris Larsen and CEO Brad Garlinghouse.
The SEC initially had about three months from the release of Form C to submit its main brief, proposing an extension in late October 2024 which was granted, stretching the timeline to mid-January. This extension has fueled discussions within the XRP community about the potential actions the SEC might pursue as the deadline approaches, particularly with the impending shift in SEC leadership.
Legal opinions suggest that the SEC, under the current Gensler-led administration, will file the appeal promptly before the administration change. Prominent pro-XRP attorney Jeremy Hogan expressed on social media that the SEC is likely to pursue its appeal to the Second Circuit Appeals Court, attempting to overturn certain aspects of Judge Torres’ August decision.
Hogan doesn’t anticipate the brief to be decisive for the overall outcome but stresses its significance in the ongoing legal proceedings. He also suggested that irrespective of the appeal, the incoming SEC administration could still negotiate a settlement with Ripple or possibly dismiss the case entirely.
Regarding a potential settlement, Hogan noted that it’s within the realm of probability. Both parties had previously arrived at a partially satisfactory decision of a $125 million settlement last August, which leaves room for further discussion. Should both parties opt for settlement, it could possibly influence the market similarly to past events, boosting XRP’s market price considerably.
Investment analysts remain optimistic about the prospects of a settlement, some projecting significant upticks in XRP’s value following a favorable legal resolution. However, such predictions hinge largely on the proceedings’ outcome and subsequent decisions by the SEC and Ripple.
As the crypto and investment communities watch closely, the next few weeks will be crucial in shaping XRP’s legal and financial trajectory. The ongoing uncertainty underscores the broader dialogues surrounding regulation and the status of cryptocurrencies in the U.S. financial landscape.
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