Bitrabo Editorial
In a recent interview with Kristi Warner on Crypto Law TV, attorney James Murphy, better known as “MetaLawMan,” shared insights on the ongoing XRP lawsuit involving Ripple Labs and the US Securities and Exchange Commission (SEC). He addressed the SEC’s latest appeal and the potential strategies Ripple could consider moving forward.
Murphy expressed his expectation regarding the SEC’s decision to appeal the summary judgment delivered by Judge Analisa Torres. This ruling stated that while Ripple’s institutional sales of XRP constitute unregistered securities, XRP itself is not classified as a security. “I anticipated that the SEC would appeal,” Murphy remarked, noting that appealing is common practice when a party loses part or all of a case.
He pointed out that the SEC’s choice to pursue an interlocutory appeal—a request to appeal before a final judgment in the case—demonstrated their unhappiness with Judge Torres’ initial ruling. “The SEC was very unsettled by the ruling that XRP is not a security, leading them to seek an immediate appeal,” he explained.
Murphy went on to highlight key areas he believes the SEC will target in their appeal. A significant point of contention is likely to be Judge Torres’ finding that XRP transactions in secondary markets do not constitute investment contracts. “This is definitely going to be a primary focus in the appeal,” he asserted.
Additionally, the SEC may question the judge’s decision to impose no disgorgement, a remedy that requires wrongdoers to return ill-gotten gains. Murphy noted that current precedents from the Second Circuit Court of Appeals necessitate that victims demonstrate financial losses to justify disgorgement. “The SEC didn’t meet that requirement… It was the retail XRP holders who suffered the losses,” he remarked.
While less likely, Murphy also mentioned that the SEC could attempt to appeal the $125 million civil penalty that was levied on Ripple. “This is a rather weak position for them to take… The judge has considerable discretion,” he commented.
Will Ripple Consider a Cross-Appeal?
Murphy highlighted responses from Ripple’s CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, which suggested a possible cross-appeal. He voiced strong approval for this idea, especially regarding the classification of institutional sales as investment contracts.
“I am in favor of pursuing a cross-appeal,” he stated emphatically. Murphy argued that institutional buyers acquired XRP at wholesale rates for resale, similar to wholesalers dealing in commodities, and not as investments in Ripple’s business. “They were not investing in Ripple… This should not be seen as an investment contract,” he stressed.
He outlined a timeline for the appeals process, noting that both parties have deadlines to submit briefs and outline their appeal issues. Murphy estimated that a conclusive decision from the Second Circuit Court of Appeals may not materialize until early 2026. “Typically, it takes over a year… My prediction is that we’ll see a ruling around the first quarter of 2026,” he estimated.
Murphy also indicated the possibility of industry players submitting amicus briefs, which can further prolong the process. “I expect numerous amicus briefs to be filed… Coinbase has indicated this case is of great significance,” he noted.
At the time of writing, XRP was valued at $0.52.