In a significant development on Wednesday, October 2, the United States Securities and Exchange Commission (SEC) took a decisive action by filing a Notice of Appeal against Judge Torres’s ruling in the XRP lawsuit involving Ripple. This decision comes in response to the final judgment issued by the US District Court, Southern District of New York, on August 7, a verdict that the SEC seeks to contest.
What the SEC’s Appeal Means for Ripple
The SEC’s notice of appeal is notably vague, failing to specify the exact elements of the case it plans to challenge. This ambiguity has fueled speculation about whether the SEC intends to contest both decisions by Judge Torres—the ruling on programmatic sales of XRP, which notably clarified that XRP itself is not considered a security, and the remedies imposed on Ripple’s institutional sales, which were finalized on August 7.
Ripple’s Chief Legal Officer, Stuart Alderoty, promptly responded to the SEC’s appeal through a post on X, expressing disappointment yet acknowledging the predictability of the SEC’s move. Alderoty criticized the SEC’s ongoing legal strategies and hinted that Ripple is contemplating a cross-appeal. Should Ripple choose to take this route, it must file within a 14-day timeframe starting from October 3.
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“The SEC’s decision to appeal is disappointing, but not surprising. This just prolongs what’s already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course,…” – Stuart Alderoty (@s_alderoty)
Projected Timeline for the XRP Case
Crypto lawyer James “MetaLawMan” Murphy shared insights into the potential next steps in the Ripple case, noting that the SEC has 14 days to file a form outlining the specific issues it plans to appeal. Fred Rispoli, a pro-XRP lawyer and founder of HODL Law, provided a detailed projection of the appellate timeline, estimating that the SEC’s brief would likely be due by December 2, 2024. A probable request for a 30-day extension could push this deadline to early January 2025.
Simultaneously, Ripple would be preparing its opening brief for a possible cross-appeal around this period. The subsequent opposition briefs would be due by February 2, 2025, with Ripple potentially extending this deadline to March 2, 2025. Reply briefs would follow in late March 2025, with oral arguments anticipated between September and October 2025. A final ruling from the Second Circuit might be expected no earlier than January 2026, although it could realistically extend to March or April 2026.
Community Reactions and Speculations
The news of the SEC’s appeal has ignited discussions within the XRP community. Chad Steingraber raised inquiries about the timeline for the case potentially reaching the Supreme Court, to which Rispoli estimated an additional 1.5 to 2 years following the Second Circuit’s decision. Other community members speculated on potential political influences affecting the case, contemplating scenarios where changes in the US administration might alter the SEC’s stance or even prompt a withdrawal of the appeal.
Addressing a query about why the SEC might consider withdrawing its appeal, Rispoli noted, “The parties could agree to withdraw the appeal at any time.” He further explained, “There is a mandatory mediation program in the appellate courts that encourages all parties to settle as early as possible. In an extreme scenario, if political shifts occur, like a significant electoral loss linked to the Ripple case, it could prompt the SEC to reconsider its position swiftly.”
Currently, XRP is trading at $0.5332, reflecting a 10% decrease over the last 24 hours.
