SEC vs. Ripple: SEC Appeal Sends XRP to $0.50
On Wednesday, October 2, the Securities and Exchange Commission filed a Notice of Appeal, signaling its intent to appeal rulings in the SEC v Ripple case.
The SEC filing, just days before the appeal window closed, gave no clues on which rulings the agency plans to challenge. Pro-crypto lawyer James ‘MetaLawMan’ Murphy predicted the SEC to appeal two rulings:
- Disgorgement ruling – In her final judgment, Judge Analisa Torres ordered Ripple to pay $125 million in civil penalties for selling unregistered XRP. However, she denied the SEC’s request for disgorgement of $1.1 billion.
- The Programmatic Sales of XRP ruling – In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
A former SEC lawyer expected the SEC to appeal, saying that the agency would probably appeal Judge Torres’s July 2023 ruling concerning the XRP programmatic sales. The unnamed lawyer also stated,
‘Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”
The crypto market awaits the SEC’s Form C, which will reveal its appeal strategy.
From September 30 to Saturday, October 5, XRP was down 16.81% to $0.5335.