crypto-news-flash.com
- The Ripple vs. SEC lawsuit continues to generate interest, as the case remains open for appeal until October, leaving uncertainty about the final outcome.
- Legal experts have revised their expectations regarding the likelihood of an SEC appeal, with chances now estimated between 45-50%, down from 80%.
Although the Ripple vs SEC lawsuit has come finally to its concluding stage, it still continues to draw excitement among the community members over what’s next after the recent court ruling asking Ripple to pay $125 million in penalty to the U.S. Securities and Exchange Commission (SEC).
Many crypto industry participants called it a major win for Ripple as the court-declared penalty was significantly less than the SEC’s initially proposed penalty of $2 billion. While some called it the end of the legal battle, the case still remains ongoing as the court has given both parties until October to appeal the judgment.
On one hand, Ripple seems to be quite satisfied with the court’s verdict with CEO Brad Garlinghouse stating that they respect the court’s decision. On the other hand, Ripple CLO Stuart Alderoty stated that the company is making plans to pay the $125 million in penalty directly from its balance sheet. As the case nears settlement, there’s a massive movement of XRP to exchanges, reported Crypto News Flash.
SEC’s Chance of Appeal in Ripple Lawsuit is Decreasing
Previously, pro-XRP lawyer Bill Morgan stated that there was an 80% chance of the appeal coming from the SEC. However, watching the developments in other cases between the crypto industry and the SEC, Morgan has now reduced the chance of appeal to anywhere between 45-50%.
For example, Judge Orrick, who is presiding over the lawsuit between Kraken and the SEC, favored the approach taken by Judge Jackson in the Binance case and Judge Torres, rather than the stance of Judge Rakoff in the Terraform case. Thus, Morgan said:
“The favorable comments about aspects of Judge Torres’ reasoning in the Ripple summary judgment decision by Judges Orrick (Kraken case) and Jackson (Binance case) should assuage doubts about the correctness of her decision raised by some critics such as Gasparino”.
However, Mogan believes that the US SEC can distinguish the Ripple lawsuit from others since “it is narrowly confined to its own facts”. However, even if the SEC appeals, Stuart Alderoty stated that the agency’s chances of securing a decisive victory are less than 10%.
The Cost of Appeal to the US SEC
Pro-XRP lawyer Fred-Rispoli recently raised an important question on the matter stating that if Ripple wins the appeal, the U.S. SEC would not only have to return the $125 million penalty but also pay statutory interest, reported Crypto News Flash.
Former SEC lawyer James Farrell responded by explaining that if Ripple wins the appeal, the SEC might need to cover the costs associated with the appeal. Additionally, the agency could be responsible for other fees, including bond payments, depending on specific legal provisions.
Farrell also pointed out that the situation could become even more complex if the case moves back for a new trial, potentially leading to further legal battles, per the CNF report.