Crypto: Ripple’s victory threatened? The SEC could change everything on appeal!

While Ripple’s recent victory against the US regulator was hailed as a breakthrough, the possibility of an appeal threatens to upend that delicate balance. According to Dennis Kelleher, CEO of Better Markets, the SEC has a 90% chance of prevailing on appeal, which could not only redefine Ripple’s fate but also influence the future contours of digital asset regulation in the US.

A mixed first triumph for Ripple

Judge Analisa Torres’ recent ruling in favor of Ripple was met with measured satisfaction by the crypto ecosystem. By ruling that only institutional sales of XRP violated securities laws, the court exempted secondary transactions from this qualification, thus providing a strategic respite for Ripple. However, this victory is far from complete. By imposing a fine of $125 million on the company — an amount well below the $2 billion initially sought by the SEC — the justice system recognized some of Ripple’s practices as illegal. This judgment, while seen as a step forward, casts a shadow over the legal stability of cryptocurrencies, particularly with regard to their classification as financial securities.

The Ripple case, which has become a veritable bellwether for crypto regulation, has seen its implications extend far beyond the borders of this company. Judge Torres, by recognizing the partial legitimacy of Ripple’s arguments, has reopened a critical debate on the nature of digital assets and their legal status in the United States. This decision, while giving Ripple a partial victory, also reignites hostilities, with an SEC determined to challenge this outcome on appeal.

Towards a turnaround? The implications of a possible SEC victory

While the initial decision seemed to offer Ripple and its native crypto, XRP, a favorable outcome, the prospect of an appeal by the SEC complicates the picture. Dennis Kelleher, CEO of Better Markets, does not hide his skepticism about Ripple's victory, estimating that the SEC has a 90% chance of overturning this judgment on appeal. According to him, Judge Torres has “overturned 90 years of case law”, an argument that could weigh heavily in the balance in future hearings. This prospect calls into question not only the solidity of Ripple's victory, but also the entire legal framework that governs cryptocurrencies in the United States. In fact, the threat of an appeal thus suggests a continuation of uncertainty, both for XRP and for other cryptocurrencies.

This potential appeal, if successful, could not only reverse Ripple’s gains, but also set a legal precedent that would have far-reaching consequences for crypto as a whole. By prolonging an already fraught legal battle, the SEC is clearly seeking to reassert its authority and clarify crypto regulation. For Ripple, the stakes are no longer limited to simply defending its past practices, but extend to the very survival of its business model in an increasingly hostile environment. The outcome of this appeal could thus redefine the rules of the game for an industry that is booming but still seeking legal recognition.