SEC Advances Its Appeal Against Ripple: What’s Next for the Crypto Industry?

The U.S. Securities and Exchange Commission (SEC) has made significant progress in its ongoing lawsuit against Ripple.

The SEC’s appeal has now been officially filed in the Second Circuit PACER Court of Appeals, marking a key development in the high-profile legal battle.

SEC’s Appeal Recorded in Second Circuit’s PACER Docket

Prominent defense attorney James K. Filan shared the update on X (formerly Twitter), noting that the appeal has been registered in the Second Circuit’s PACER docket system.

The PACER system is used to track federal cases processed within the Second Circuit, providing official confirmation that the SEC’s appeal is now in progress.

#XRP #XRPCommunity@coinbase has asked the judge in its case to certify its interlocutory appeal so that it may present its case to the 2nd circuit alongside Ripple.
Together, both cases would give the 2nd circuit a comprehensive view of the SEC's unlawful approach to crypto. I… pic.twitter.com/dGjPz0CjjW

— Ashley PROSPER (@AshleyPROSPER1) October 5, 2024

The SEC’s appeal challenges specific aspects of Judge Analisa Torres’ July 13, 2023 ruling in favor of Ripple. The appeal was recorded on October 4 in the PACER registry system under the title “Securities and Exchange Commission v. Ripple Labs Inc.,” with docket number 24-2648.

Ripple’s Executives Named in the SEC’s Appeal

Despite losing its case against Ripple executives Brad Garlinghouse and Chris Larsen last year, the SEC has included their names in the appeal as “Defendant-Appellee.”

Intervenors in the case, represented by Massachusetts senatorial candidate John Deaton, include Jordan Deaton, James LaMonte, Tyler LaMonte, and Roslyn Layton.

🚨BREAKING: The U.S. Securities and Exchange Commission (SEC) has scheduled an emergency meeting to discuss a potential settlement of the #XRP lawsuit appeal with #Ripple. pic.twitter.com/etxPW54pfz

— KingXRP (@MRKingXRP) October 6, 2024

Ripple’s Confident Response to SEC’s Legal Move

Ripple remains confident that it will emerge victorious from the appeals process. CEO Brad Garlinghouse has expressed optimism that the outcome will benefit the company, the XRP community, and the broader cryptocurrency industry. Chief Legal Officer Stuart Alderoty also reiterated Ripple’s belief that the SEC’s lawsuit is flawed and irrational.

A few of my favorite 2nd Circuit Court of Appeals quotes from the last time the SEC stuck its hand into that appellate buzz saw. [SEC v Govil]
1. "We do not agree with the SEC."
2. "We are not persuaded" by the SEC's arguments.
3. "The SEC's counterarguments are unavailing."

— Stuart Alderoty (@s_alderoty) October 4, 2024

Alderoty pointed to a previous Second Circuit ruling against the SEC, highlighting statements like “We are not convinced by the SEC’s arguments” and “We disagree with the SEC,” to bolster Ripple’s position.

Mixed Reactions from Legal Experts

Former SEC attorney Marc Fagel believes the SEC may have a stronger chance if the appeal is reviewed by a panel historically favorable to government agencies. Attorney Fred Rispoli also noted on the “Thinking Crypto” podcast that there could be a “70% to 80% chance” of the SEC winning, depending on the panel’s composition.

The legal community continues to closely watch this case, as the outcome could have wide-reaching implications for the cryptocurrency industry.