Former SEC official Kristina Littman has raised speculation that the SEC may choose not to appeal the Ripple ruling in order to avoid establishing an unfavorable law at the Second Circuit.
The legal battle between the SEC and Ripple is nearing a potential resolution, with the crypto community eagerly awaiting the court’s final decision. Ripple CEO Brad Garlinghouse has predicted that the court could issue its final ruling before the end of Summer 2024.
However, the key question remains whether the SEC will appeal the initial ruling, which granted Ripple a partial victory in July 2023, once the final verdict is delivered.
Littman, who previously headed the SEC’s Enforcement’s Cyber Unit, recently joined the debate on a potential appeal in the Ripple lawsuit. She suggested that there are speculations within the industry that the SEC may not appeal the initial ruling, which categorized Ripple’s programmatic sales and other distributions of XRP as non-securities.
During a conference titled ‘Digital Assets and Cryptocurrency – Regulation and Enforcement of Exchanges, Crypto Lending, DeFi, NFTs and More,’ Littman stated that the SEC could leave the Ripple ruling as a district court opinion instead of appealing it. She argued that an appeal would risk establishing an unfavorable precedent at the Second Circuit if the SEC were to lose.
Littman pointed out that the judge in the SEC v. TerraForm Labs case rejected the reasoning applied in the Ripple case. Additionally, she highlighted that Coinbase did not address the Ripple ruling but instead adopted the Terra opinion.
As a result, many believe that the SEC is unlikely to appeal the Ripple summary judgment decision, as it could potentially set a negative precedent at the Second Circuit.
A prominent member of the XRP community, wEeZiE, suggested that Littman’s comment was not mere speculation but rather confirmation that the SEC may indeed choose not to appeal the Ripple case.
In a failed attempt, the SEC sought to file an immediate appeal challenging the decision on Ripple’s programmatic sales and other distributions of XRP. However, the court denied this request and instructed the SEC to wait for the final judgment.
Experts and Ripple executives anticipate that the court’s final verdict will be issued this year, potentially before the end of Summer 2024. It remains unclear whether the SEC will appeal the initial ruling in the Ripple case or accept it without risking the establishment of an unfavorable precedent at the Second Circuit.
Please note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic assumes no responsibility for any financial losses incurred.
