Written by Hazel J. Greene, Senior Analyst

Following Ripple’s recent triumph in the legal battle against the U.S. Securities and Exchange Commission (SEC), the cryptocurrency community is abuzz with discussions on possible appeals and the potential consequences for XRP investors.

On July 13, Judge Analisa Torres declared that XRP does not fall under the category of securities, dismissing the SEC’s longstanding allegations that Ripple had conducted an unregistered securities offering through its XRP sales. This legal victory for Ripple has generated optimism, but concerns about a potential appeal by the SEC still loom.

Jeremy Hogan, a pro-XRP lawyer, has shared his insights on the likelihood of appeals in the ongoing legal battle between Ripple and the SEC.

Contrary to popular belief, Hogan believes the timing and the nature of the ruling make an appeal unlikely. Typically, appeals occur after a case concludes, but in the Ripple lawsuit, there is no final judgment yet, making any potential appeal an “interlocutory appeal.”

Interlocutory appeals are seldom granted, generally reserved for situations where revealing confidential information through the discovery process would be required.

Hogan emphasizes that appeals are challenging to win, as appellate courts typically defer to the lower court’s ruling, especially if a thorough review of the entire record has been conducted. In the case of Ripple, Judge Torres’s review of the complete record makes it difficult for either party to overturn the ruling on appeal.

Furthermore, if the SEC were to appeal and lose, the decision would have to be followed by every Second Circuit Court (DCA). This means that the SEC’s loss could set a precedent followed by all courts within the 2nd DCA, potentially limiting the SEC’s ability to bring similar cases in the future.

Hogan further suggests that as long as Ripple can pay the fine and the ruling does not adversely affect its business, the company is unlikely to appeal the ruling. Additionally, since the ruling favored Ripple, the probability of an appeal on their part decreases.

The SEC’s argument regarding secondary market sales poses a potential issue on appeal. The judge’s ruling might make it challenging for the SEC to argue that these sales should be considered unregistered securities offerings.

On the other hand, if the SEC were to appeal the ruling, it would likely result in a protracted legal battle that could last for months or even years. Throughout this period, XRP investors would face continued uncertainty and potential market volatility as the outcome of the case remains uncertain.

However, the potential outcomes of an appeal are not straightforward. While an appeal could lead to the ruling being overturned, it could also reaffirm Judge Torres’s decision. Ultimately, the outcome of any appeal would largely depend on the strength of the SEC’s case and its ability to convince a higher court that the initial ruling was flawed.

Despite the risks and uncertainties, many investors maintain an optimistic outlook on the future of Ripple and XRP. With an expanding list of partners and a commitment to driving innovation in the blockchain space, Ripple has emerged as a prominent player in the crypto world, with experts forecasting significant growth and adoption in the years to come.

While the possibility of appeals remains, Hogan’s analysis suggests that such actions are unlikely. As the case progresses, the crypto community will be closely monitoring subsequent developments and their potential impact on XRP’s future and other digital currencies.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.