The legal battle between Ripple and the SEC is far from over. After a judge ruled that Ripple’s institutional sales of XRP were unregistered securities, but XRP itself isn’t a security, both sides are appealing the decision.
SEC’s Appeal: What’s at Stake?
The SEC is definitely appealing the ruling, and they’re likely to focus on two key points:
- Secondary Market Transactions: The SEC will argue that transactions of XRP on secondary markets were actually investment contracts, which would mean XRP is a security.
- Disgorgement: The SEC might try to overturn the judge’s decision not to order Ripple to pay back any profits. This is a long shot, as the SEC needs to prove that victims suffered financial losses.
Ripple’s Counter-Attack: A Cross-Appeal?
Ripple’s CEO and CLO have hinted at a possible cross-appeal, and lawyer James Murphy thinks this is a good idea. He believes the judge’s decision on institutional sales was wrong, arguing that these buyers were essentially wholesalers, not investors.
What’s the Timeline?
The appeals process will take some time. Both sides have deadlines to file briefs and identify the issues they want the court to consider. Murphy estimates that a final decision from the court won’t come until the first quarter of 2026.
Amicus Briefs: A Potential Delay?
The timeline could be extended if various industry stakeholders file “amicus briefs,” which are legal arguments from parties who aren’t directly involved in the case. Coinbase has already signaled its intention to file an amicus brief, showing how important this case is to the crypto industry.
