As Deadline Approaches, Ripple Faces SEC Appeal: What’s Next for XRP?

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As the October 7 deadline for filing an appeal approaches, speculation over the SEC’s next move intensifies. A former U.S. Securities and Exchange Commission (SEC) lawyer believes the regulatory body will likely appeal Judge Analisa Torres’s July 2023 ruling. This prediction, first reported by Fox Business journalist Eleanor Terrett, has fueled concerns within the cryptocurrency industry.

Judge Torres ruled that XRP itself is not a security. However, the SEC is expected to challenge her decision on Ripple’s programmatic sales of XRP. Many within the SEC view her ruling on this matter as flawed, which could motivate the agency to appeal.

Legal Experts Offer Diverging Opinions

Attorney John Deaton, who filed an Amicus Brief for XRP holders, has expressed his thoughts on a possible appeal. He argues that Judge Torres’s decision was fact-specific and that the SEC could face difficulties in proving the existence of a “common enterprise,” which is a key part of the Howey Test. This test determines whether an asset qualifies as a security.

Meanwhile, former SEC lawyer Marc Fagel also anticipates an appeal, given the rapidly approaching filing deadline. However, some legal experts question whether the SEC should pursue this action, considering its mission to protect investors and foster capital growth.

Ripple Moves Forward Despite Appeal Speculation

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Despite the uncertainty surrounding a possible SEC appeal, Ripple is advancing with its plans. Ripple’s President, Monica Long, recently shared the company’s strategy, which includes launching the RLUSD stablecoin and further developing the XRP Ledger.

XRP Battles Market Resistance

*XRP Price Analysis. Source| TradingView*

Amid legal uncertainties, XRP continues to face price resistance. The cryptocurrency has struggled to rise above the $0.600 mark, with its current value hovering around $0.5840. Analysts point to support levels at $0.5800 and $0.5740, and resistance levels at $0.5880 and $0.5960. Market volatility remains high as investors await the SEC’s decision and the potential appeal’s outcome.

Overall, Ripple seems prepared for both legal challenges and market opportunities as it pushes forward. However, the looming appeal could significantly impact the future trajectory of XRP.