Ripple vs SEC: Chances of Appeal Increase After New Agreement

In This Post:

• Ripple and the SEC agree to hold 111% of the judgment in trust.
• Legal expert Fred Rispoli hints at a higher chance of appeal.
• The cryptocurrency community reacts with mixed opinions.

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In the ongoing legal fight between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), a new agreement may increase the chance of an appeal. Fred Rispoli, a crypto lawyer, shared details on Twitter about this agreement. It involves keeping 111% of the monetary judgment in trust. This move suggests that an appeal is more likely.

The agreement means that the money held in trust will be used to pay the SEC under specific conditions. These conditions include 30 days after the appeal deadline if no appeal is filed, or after an appeal ends, if one is made. This setup ensures Ripple can meet its financial obligations while preparing for possible further legal action.

Higher Chance of Appeal

Rispoli notes that setting up such a trust is unusual. It often means that one party, in this case, the SEC, may be unsure about its next steps. While this agreement does not confirm an appeal, it suggests the possibility has grown. Deciding to appeal involves looking at many factors, like the case’s strength and legal precedents. Rispoli said “the odds have increased,” indicating a higher chance of more legal battles.

#SECvRipple Update: Well, the odds have increased of an appeal. @Ripple and SEC have agreed to an arrangement where 111% of monetary judgment will be held in trust, to be paid to SEC only on (1) 30 days after appeal deadline or (2) after appeal concludes. This is not a…1/2

— Fred Rispoli (@freddyriz) September 4, 2024

Community Reactions and Future Impact

Comments on Rispoli’s tweet show a range of opinions from the cryptocurrency community. For example, user Kitty Leroux doubts the SEC’s motives. Leroux believes the SEC might appeal to harm Ripple’s progress, saying, “The SEC has no shame. They will appeal to continue their mission.”

This perspective shows concerns about how ongoing legal issues could affect Ripple. If the SEC appeals, Ripple might face higher legal costs and more regulatory challenges. An appeal could also help the SEC reinforce its views on digital assets and set new rules for the industry.

To those freaking out over possible #SECvRipple appeal: Don't. There won't be a ruling until 2026. SEC suing exchanges and alleging multiple tokens as securities has lessened the sting dramatically. If Ripple and/or #XRP don't make it now, it's not because of the SEC's case.

— Fred Rispoli (@freddyriz) September 5, 2024

Looking Ahead

As the deadline for a potential appeal approaches, attention remains focused on Ripple and the SEC. This case could have significant effects on the future of digital assets. The next steps in this legal battle will be closely watched to see how the situation develops.