The U.S. Securities and Exchange Commission (SEC) has just a few days left to file an appeal regarding the recent ruling in the Ripple case. This ruling, which recognized secondary XRP token sales as non-securities, marked a significant moment in the ongoing legal battle. The deadline for the SEC to challenge the decision is October 7, and all eyes are on the agency’s next move.
The ruling by Judge Analisa Torres provoked a positive response from Ripple and the entire crypto society because it gave at least some clarity on the situation with XRP. The ruling also drew a clear line between selling institutional tokens and selling tokens in the secondary market, at which the latter was deemed non-security sales. At the same time, many experts considered this decision in favor of Ripple; however, the situation has not been solved to the maximum extent, and contradictions still exist concerning token sales in legal commentary.
Also Read: SEC Expected to Appeal Ripple Ruling as Deadline Approaches
Potential Appeal Expected from the SEC
Marc Powers, a former SEC enforcement attorney, believes the agency is likely to challenge Judge Torres’ ruling. He suggests that the SEC might seek an appeal to clear up the confusion surrounding the classification of different types of token sales. The other judge, Jed Rakoff, made a similar decision and dismissed the approach that Torres used, creating many internal legal disputes.
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However, not everybody is sure that the SEC will challenge this decision to the appeal level. Some critics have said that the agency would not do so. Such remarks have been echoed by former chief of the SEC’s Cyber Unit, Kristina Littman. She pointed out that the SEC may not care about this being brought to another circuit court since the latter would seem to carry the force of law.
Ripple’s chief legal officer, Stuart Alderoty, joined the comments on this matter. Though he agreed that it is imaginable to get an appeal from the SEC, he advanced the hope that Ripple’s victory on the legal classification of XRP will remain solid if the case proceeds.
SEC Faces Criticism for Lack of Clear Regulations
The cryptocurrency industry has accused the SEC of lacking a clear regulatory framework. Many specialists maintain that industry uncertainty stems from the agency’s use of outmoded securities laws. However, SEC Chair Gary Gensler insists that existing laws are enough, although he has advocated for increased regulation of activities within the crypto market. Gensler has also said that the sector may not be sustainable without considerably higher levels of regulation. On the eve of the October 7 deadline, one cannot predict the outcome of the Ripple case. Whether the SEC decides to appeal is likely to have major consequences on the whole crypto industry.
Also Read: Mark Cuban Open to Leading SEC Amid Crypto Controversy
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.