On Wednesday, the US Securities and Exchange Commission (SEC) officially started an appeal against the recent ruling regarding Ripple Labs. The details of the SEC’s appeal have not yet been shared, leaving the XRP community uncertain. However, attorney Bill Morgan, who supports XRP, clarified on X that the status of XRP in the secondary market, particularly its trading on US exchanges, is not contested.
Safety of XRP in Secondary Market
Morgan points out the need to separate different types of transactions, particularly those involved in the legal proceedings. He explained on X, “There’s some misunderstanding regarding secondary sales, as some interpret Ripple’s sales through exchanges to retail investors as secondary sales.”
He further clarified that the court’s ruling did not encompass secondary sales, stating, “Judge Torres did not make any rulings about secondary sales involving retail investors trading XRP on exchanges.” He emphasizes that these transactions are not part of the ongoing appeal. “This was explicitly mentioned in a footnote of the ruling,” he added, indicating that this matter remains unresolved and cannot be addressed in the appeal.
According to Morgan, the SEC’s appeal is narrowly concentrated. “The appeal focuses on Ripple’s programmatic sales and other distribution methods,” he mentioned. He also warned that the appeal could delve into different legal issues regarding penalties and other consequences.
In a recent exchange, Morgan recounted a conversation with former SEC lawyer Marc Fagel, where they agreed that the appeal is likely to center on programmatic sales and Ripple’s distribution practices, although it’s not guaranteed.
Fox Business journalist Eleanor Terrett pointed out on X the procedural necessities for the appeal. She noted that “The SEC has yet to submit its Form C to the Second Circuit, outlining the specifics of their appeal, which they need to do quickly for Ripple to determine their next steps.” Terrett also highlighted that Ripple has a 14-day window to file a cross-appeal if they decide to do so.
Within the legal circles, many anticipate that Ripple will proceed with a cross-appeal. Morgan expressed confidence, saying, “It’s hard to believe Ripple won’t file a cross-appeal.” Fred Rispoli, founder of HODL Law, shared his prediction, stating, “The SEC will appeal. Ripple will likely cross-appeal. The ongoing cases against Coinbase and Kraken persist. Stay calm.”
Additionally, Ripple’s Chief Legal Officer, Stuart Alderoty, hinted in his recent post on X that the option for a cross-appeal is under consideration, indicating Ripple’s strategic approach to the SEC’s legal actions.
At the time of writing, XRP was priced at $0.5281.
