Ripple vs. SEC: Can the SEC Win an Appeal? Legal Experts See Slim Chances
The ongoing Ripple vs. SEC case has taken a new turn, with the Securities and Exchange Commission (SEC) indicating potential plans to...
The ongoing Ripple vs. SEC case has taken a new turn, with the Securities and Exchange Commission (SEC) indicating potential plans to appeal Judge Analisa Torres’ summary judgment on XRP programmatic sales.
This move has led to widespread speculation about the agency’s chances of success. Pro-XRP lawyer John Deaton, who represents 75,000 XRP holders, believes the SEC’s odds of winning an appeal are slim.
He argued that the case is fact-specific, making it challenging for the appellate court to overrule the district court’s judgment.
“Judge Torres’ ruling was based on a careful analysis of facts, and I don’t see an appellate court overturning it,” Deaton said.
Moreover, Deaton noted that the SEC didn’t use any expert testimony related to XRP holders, which the Judge excluded during the proceedings.
RIPPLE VS SEC: SEC ITCHIN' FOR A REMATCH ON XRP RULING
Word on the block is the SEC ain’t done yet. Former SEC lawyer says they’re gunning to appeal Judge Torres' call on XRP before Oct. 7.
Torres ruled XRP sales weren’t securities – SEC says that’s “bad law” and needs fixing.… pic.twitter.com/8hJyyWXpgE
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 30, 2024
Instead, Judge Torres relied on concrete evidence, making it difficult for the SEC to establish a ‘common enterprise’—a key element in the Howey Test, which determines whether an asset is considered a security.
Legal Perspectives on the SEC’s Potential Appeal
Legal experts like Fred Rispoli and Bill Morgan agree that the SEC’s success largely depends on the judges selected to hear the appeal. According to Rispoli, the SEC’s only real chance of victory would be if three SEC-biased judges are randomly selected, which is unlikely.
“If the SEC draws 3 SEC-biased judges (rare but possible), it could win,” Rispoli said.
The possibility of a favorable outcome for the SEC is further diminished by the fact that, even if the appellate court finds an error in Judge Torres’ application of the ‘common enterprise’ prong, the case would return to her district court for re-evaluation.
This would give Ripple another opportunity to win the case.
If the SEC ultimately decides not to appeal, it would be a substantial victory for Ripple and the broader XRP community.
A decision not to appeal would establish a precedent that secondary market sales of XRP do not constitute investment contracts.
This outcome would also significantly strengthen the positions of other companies currently litigating against the SEC.
#XRP it is safe to assume everything we see & hear is an act …. SEC vs Ripple included – what serious CEO would sit back and watch his company & its investors get obliterated for 5 years and NOT Counter SUE … as if Galinghouse doesnt have enough sense to defend SEC Abuse
— grizzly cardano (@bosse_ed) September 30, 2024
Daily Technical Outlook: XRP/USD – September 29
XRP/USD surged above its consolidation range, breaking from a symmetrical triangle pattern, and is now trading at $0.6194. The bullish breakout was supported by strong buying volume, pushing the cryptocurrency above the key pivot point at $0.6033.
Immediate resistance lies at $0.6242, with higher levels at $0.6322 and $0.6407. A move above these levels could signal continued bullish momentum.
On the downside, immediate support rests at $0.6131, followed by $0.6033 and a stronger support level at $0.5948. Technical indicators are showing a bullish trend, with the 50-day EMA ($0.5931) above the 200-day EMA ($0.5823), suggesting continued upward pressure.
The Relative Strength Index (RSI) is at 70, indicating overbought conditions, which could lead to a short-term pullback or consolidation before further gains.
Key Insights:
- Immediate Resistance: $0.6242; Next resistance: $0.6322, $0.6407.
- Immediate Support: $0.6131; Next support: $0.6033, $0.5948.
- Technical Indicators: RSI at 70 suggests overbought conditions; watch for a pullback.
In conclusion, the recent breakout positions XRP for further upside potential, but investors should watch for a possible correction if overbought conditions persist. The next targets lie around $0.6322 and $0.6407 if the bullish trend holds.
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