Ripple Vs. SEC: Important Deadline for XRP Investors

Ripple Vs. SEC: Important Deadline for XRP Investors

Ripple vs. SEC: The Next Possible Deadline and Implications

In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), a recent order by Judge Torres has left many XRP investors eagerly awaiting the next steps. To shed some light on the situation, prominent attorney Jeremy Hogan has offered valuable insights into the potential appeal process with deadlines and its implications for both parties involved.

Understanding the Next Possible Deadline

Hogan, a seasoned attorney with experience in appeals, explains that appeals are typically pursued after a case is completely finished. However, in the Ripple vs. SEC case, since the final judgment has not been entered yet, any potential appeal at this stage would be considered an “interlocutory appeal.”

According to Hogan, the Rules state that there is a 10-day window to notice an interlocutory appeal. As the Summary Judgment was issued on July 13, an appeal by the SEC or Ripple Labs would have to be filed by July 23 at the latest. This means that by next Monday, it will become public whether one of the parties files an appeal.

It’s worth noting that an interlocutory appeal is rarely granted and generally requires compelling reasons, such as the release of significant information that could impact the case. In this scenario, Judge Torres did not certify her ruling for immediate review, indicating that an interlocutory appeal might not be granted. This suggests that both the SEC and Ripple would need to wait for a final judgment before pursuing an appeal.

Potential Reasons for Not Appealing

Hogan speculates that the SEC might hesitate to appeal because winning the appeal could potentially jeopardize their overall case. While it would retract some unfavorable aspects of the trial-level case, losing at the appellate level could set a precedent that all courts in the Second District Court of Appeals would have to follow, amplifying the impact of their loss.

On the other hand, Ripple may choose not to appeal if it can afford to pay the fine imposed and if the ruling’s effect on its business, particularly the aspect concerning the On-Demand Liquidity (ODL) feature, is manageable. Additionally, considering that Ripple secured a favorable outcome in the ruling, these factors might dissuade them from pursuing an appeal.

Hogan emphasizes that Judge Torres, who meticulously reviewed the entire case record, would be the one overseeing the appellate process. This inherently makes the appeals process challenging for either party and reduces the likelihood of an appeal.

Regarding the SEC’s challenge in appealing the secondary market sales aspect, which presents a problematic area for the regulatory body, Hogan admits that he hasn’t solidified his thoughts on the matter yet.

The XRP price experienced a significant rally following the Ripple summary judgment but has recently taken a breather. After being rejected at the 38.2% Fibonacci retracement level at $0.93, the XRP price is currently trading at $0.7481. If there is a possible retest of the 23.6% Fibonacci retracement level at $0.68, the impulsive move may see a continuation. It is important to note that the final verdict in the Ripple vs. SEC case and any potential appeals will continue to have a strong impact on the price.

XRP rally stopped at 38.2 Fibonacci level, 1-week chart

The chart above illustrates how the XRP rally was halted at the 38.2% Fibonacci retracement level. This shows that the market is closely following the legal developments and their potential implications for Ripple and XRP.

In conclusion, the recent order granting in part and denying in part the motion for Summary Judgment in the Ripple vs. SEC case has set the stage for potential appeals. While the next possible deadline for filing an appeal approaches, the decision to pursue an appeal is complex for both the SEC and Ripple. The implications of these appeals, if filed, can have far-reaching consequences for the future of Ripple and the XRP market. As the legal battle unfolds, market participants eagerly await the final verdict and its impact on the XRP price.

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