Will the SEC Withdraw the Appeal Against the Summary Judgment?

Judge Torres' final judgment could be crucial in the SEC deciding whether to withdraw its appeal in the Ripple case.

The Securities and Exchange Commission (SEC) is reportedly considering withdrawing its appeal in the Ripple case, according to a recent report from a crypto news outlet. This development could have a significant impact on XRP’s price, which has been closely following the legal battle between the two parties.

The SEC filed a lawsuit against Ripple Labs Inc and two of its executives in December 2020, alleging that they raised over $1.3 billion through an unregistered digital asset securities offering. The lawsuit has been closely watched by the crypto community, as it could set a precedent for how other digital assets are regulated in the United States.

In September 2022, Judge Analisa Torres granted summary judgment to Ripple on the SEC’s claim that seven XRP sales were part of a common enterprise, effectively ruling that XRP is not a security. The SEC filed an appeal against the summary judgment in October 2022.

Now, as reports of the SEC potentially dismissing or pausing non-fraud crypto-related cases emerge, XRP holders are keeping a close eye on the possibilities. The lack of fraud in the Ripple case could enable the SEC to withdraw its appeal or pause the case until Trump-nominated SEC Chair Paul Atkins takes the helm.

Legal experts expect Atkins to reverse course on the SEC’s crypto-enforcement efforts, which have been criticized by many in the crypto space. Former SEC Office of Internet Enforcement Chief John Reed Stark previously commented on Atkins’ crypto stance, saying, “Paul favors free markets and hates over-regulation – which should be a net-positive for the cryptoverse.”

If the SEC withdraws its appeal, it could pave the way for a faster resolution to the case and potentially open the door to a US XRP-spot ETF market, which could further boost XRP demand. Keep up-to-date with the latest SEC-related activity and Ripple case news to follow XRP’s price direction.