Ripple CLO Says Odds of SEC Winning If It Appeals Court Ruling on XRP Are Slim

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Following Judge Torres’s August 7 ruling in the XRP lawsuit, concern over the possibility of an appeal still looms. Many fear the United States Securities and Exchanges Commission (SEC) could appeal the recent court decision.

However, Ripple’s chief legal officer, Stuart Alderoty, has dismissed these fears. According to Alderoty, even if the SEC appeals the judgment, its chances of winning are very slim.

24 Days to Ripple Vs. SEC Lawsuit Resolution

In an interview, Stuart Alderoty commented on speculations that the SEC might contest Ripple’s $125 million fine in an appeal court. The attorney said the SEC’s chances of winning the appeal are slim.

🚀 **XRP Community!** Here's the scoop: @s_alderoty hints at a 10% chance of the SEC winning on appeal if they choose. Ripple will pay the fine, we're looking at a resolution within 24 days. **Bullish vibes** – let's get this party started! #XRP #LFG pic.twitter.com/ZYH3X6m2jM

— Brett Hill (@Brett_Crypto_X) August 15, 2024

The CLO also mentioned that the final resolution of the lawsuit is expected in 24 days. Moreover, Ripple has indicated an interest in paying the $125 million fine and finally wrapping up the case.

During the interview, Alderoty doubted that the SEC would appeal the court ruling. According to him, the most rational thing for the regulator would be to refrain from making any appeal moves. 

However, the CLO concluded that the SEC is far from rational, given its adamancy and aggressive stance on crypto regulations. 

Alderoty said he wouldn’t be surprised if the SEC decided to stretch the case further with an appeal. He mentioned that less than 10% of appeal cases in the second circuit succeeded in reversing a lower court decision. 

The Ripple CLO believes Judge Torres’s ruling regarding XRP sales on the secondary market stands. He said an SEC appeal would not change the verdict that XRP sales on the secondary market do not violate securities law.

XRP ETF Underway?

Market participants have been speculating about the chances of other altcoin ETFs following the launch of Ether and Bitcoin ETFs in the US. Some say XRP will be among the next batch of ETFs, especially given its recently attained legal clarity.

With the Ripple/SEC lawsuit at the settlement phase, some experts have analyzed the odds, stressing that an XRP ETF might be underway. Prominent players like Binance have even shared an XRP overview, indicating their willingness to ignore the legal issues. 

More so, open interest recently skyrocketed, with traders locking in more than $2 million in $1.10 XRP call options expiring by August 28 on Deribit. These call options had an open interest of 4,347,000 contracts. 

Some experts see this as a sign of increased demand for XRP. Others believe the XRP market is due to welcome a spot ETF.

Griffin Arden, BloFin’s head of options trading and research, says the institution will likely apply for approval to list an XRP ETF in the United States soon. Arden believes this move will drive a significant surge in prices. 

Recently, Ripple’s CEO Brad Garlinghouse weighed in on the spot ETF speculations. He noted that launching a spot XRP ETF in the US is inevitable.

Meanwhile, the price of XRP appears to have stuck between the $0.56 and $0.6 thresholds over the past month. The cryptocurrency attempted to rally past $0.6 following the August 7 XRP lawsuit court ruling. However, its strides remain obscured by the broader market struggles and other macro concerns.