As the October deadline approaches for the U.S. Securities and Exchange Commission (SEC) to file an appeal in the high-profile XRP lawsuit, former SEC lawyer Marc Fagel has shed light on the agency’s potential strategy. The XRP legal battle, which concluded in August with Ripple facing a $125 million penalty, could see further developments if the SEC chooses to appeal.
Ex-SEC Lawyer Reveals Appeal Focus
Marc Fagel, a former SEC lawyer, has indicated that if the SEC decides to appeal, the focus is likely to be on challenging the court’s ruling regarding programmatic sales. These sales, which are transactions made through intermediaries, were previously ruled not to constitute unregistered securities offerings. According to Fagel, the SEC’s appeal would aim to overturn this specific aspect of the ruling rather than contesting the penalty imposed on Ripple.
Fagel’s insights were shared in a recent discussion on X, where he emphasized that the SEC’s potential appeal would not center around the penalty but rather the legality of these sales. This strategic focus suggests that the SEC is looking to address what it perceives as a critical legal precedent set by the court.
Chances of Appeal and Market Reactions
Speculation about the SEC filing an appeal has been rife, with another ex-SEC lawyer, James Farrell, estimating a 75% chance of the agency moving forward with an appeal. Farrell believes that not appealing could weaken the SEC’s position in future cryptocurrency cases, making it a significant decision for the agency.
Despite the looming possibility of an appeal, Ripple executives, including CEO Brad Garlinghouse and CLO Stuart Alderoty, have stated that the case is concluded. They have denied any intentions of a potential appeal from Ripple’s side, which has contributed to market uncertainty.
XRP Price Volatility
Amid the ongoing legal drama, XRP has experienced significant volatility. Currently trading at $0.5834, XRP has seen a 1.4% drop in price over the past 24 hours, with its trading volume decreasing by 2% to $992.51 million. During this period, XRP’s price reached a high of $0.5949, highlighting the asset’s fluctuating nature.
Upcoming Deadline and Market Impact
With the deadline for the SEC’s appeal approaching on October 7, the market remains on edge. A last-minute appeal could extend the legal uncertainty surrounding XRP and potentially impact its future in the market. Many market observers also anticipate that Ripple might file a cross-appeal if the SEC proceeds with its plans, potentially prolonging the legal battle further.
As the deadline nears, all eyes are on the SEC and Ripple to see if the legal saga will continue or if a resolution will be reached. The outcome could have significant implications for Ripple and the broader cryptocurrency market
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