How Will Ripple React to SEC’s Appeal? Four Possible Outcomes to Consider

SEC’s Ripple Labs case appeal and potential impact on crypto landscape and Ripple’s future.

Ripple spinning waiting to land on one of Brad Garlinghouse emotions.
Created by Kornelija Poderskytė from DailyCoin
  • The SEC has appealed in the Ripple Labs case, setting the stage for a high-stakes battle.
  • Ripple’s Chief Legal Officer has warned of an immediate appeal.
  • The far-reaching consequences of this ruling have extended beyond Ripple

The recent ruling in the Ripple Labs case has been met with the SEC’s intention to appeal certain parts of it. The SEC contends that the decision lacks harmony with the existing securities laws and, as such, was “wrongly decided,” urging the court not to adhere to it. Additionally, the regulatory agency has expressed its contemplation of alternative avenues for further review.

SEC’s Appeal Failure Could Signal Inadequacy in Regulation

Should the SEC’s appeal prove unsuccessful, resulting in the loss of the case against Ripple Labs, it would deal a substantial blow to its dominion and jurisdiction over the digital asset sector. Such an outcome would signify that the SEC’s current regulatory framework may be inadequate or ill-suited to address the dynamic landscape of cryptocurrencies.


Conversely, should Ripple suffer defeat, grave ramifications could befall the company. Stu Alderoty, Ripple’s Chief Legal Officer, asserted that a summary judgment loss against the SEC would prompt an immediate appeal from the blockchain firm, escalating the matter to the United States Court of Appeals for the Second Circuit.

SEC’s Four Options in Ripple Case Could Spark Market Turmoil

The SEC’s appeal could pose downside risks to Ripple’s price, as some analysts predict a 25% crash in the near term if the SEC wins. However, the SEC has four options to fight the ruling, some of which may lead to a settlement instead of a trial. The Ripple ruling may also affect other cases involving crypto tokens, such as Terraform Labs.

  • Filing for an interlocutory appeal means appealing Judge Torres’ ruling during the litigation. This option requires permission from both Judge Torres and the Court of Appeals.
  • Going to trial against Ripple executives Chris Larsen and Brad Garlinghouse and filing a regular appeal after the verdict. This option does not require permission but may take longer.
  • Dropping the claim against Ripple executives and taking an immediate appeal. This option does not require permission and may be faster, but it would also mean giving up on the aiding and abetting allegations.
  • Resorting to the final and fourth option of settlement. This option would end the litigation and may involve concessions from both parties.

On the Flipside

  • While a loss for the SEC could impact its authority over the digital asset sector, proponents of decentralization see it as a victory for the industry’s autonomy from centralized regulatory bodies.
  • If the SEC wins the case, the potential crash in Ripple’s price could also present a buying opportunity for investors who believe in the long-term potential of the cryptocurrency.

Why This Matters

The SEC’s decision to appeal the ruling in the Ripple Labs case signals a critical juncture for the crypto industry. The outcome could set a precedent for regulatory frameworks governing digital assets and shape the future of cryptocurrency litigation.

To delve deeper into the legal dynamics shaping the crypto landscape, explore the SEC’s ongoing battle against Binance:


Ripple Case Cited in Recent SEC vs. Binance Legal Battle

For insights into Ripple’s potential US market expansion following a recent legal victory, check out this article:

XRP’s Legal Victory Clears Path for Ripple’s U.S. Market Expansion

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.