Can XRP’s security classification be challenged on appeal?

The ongoing legal dispute between Ripple and the US Securities and Exchange Commission (SEC) appears to be over. Lawyer Fred Rispoli recently raised the possibility of an appeal in the case. This development indicates that the battle may continue following Ripple's August 7 request to the SEC to postpone the payment of the $125 million fine by 15 days.

Is XRP in trouble again? Let's examine the possibility.

Ripple extension request and good deposit

Initially, Ripple had 30 days to settle the fine, but the company sought an extension, so an appeal could be filed. To facilitate this, Ripple proposed to deposit 111% of the fine – around $139 million – into a bank account. This deposit will be held for up to 30 days after the appeal period has passed or any appeal has been resolved.

SEC agrees to stay, investor uncertainty grows

The SEC has agreed to Ripple's stay request, meaning the legal fine is on hold for the time being. However, this move left XRP investors unsure. While the extension isn't direct confirmation that Ripple will appeal, it does raise concerns about a longer legal saga. The SEC has until mid-October to decide whether to pursue an appeal, leaving the crypto world on edge.

Now the question is, will the SEC bother the XRP situation?

The question of whether the SEC can appeal the classification of XRP as a security remains a hot topic in the cryptocurrency space. Recently, Meta Law Man discussed potential appeals against Ripple in an interview on Digital Vision. Cryptoview, a crypto trader, has raised concerns about these factors, specifically focusing on a key point made by renowned attorney Jeremy Hogan.

Hogan argued in the summary judgment that XRP's classification as a security is considered dicta — essentially an opinion that is not binding or appealable. Additionally, the SEC acknowledged to Judge Torres that XRP is not a security in itself. In response, Stuart Alderotti, Ripple's general counsel, also said that XRP and secondary sales on the exchange will not be involved in the appeal.

Legal process and possible appeals

OGC-Sky expressed concern that User X may use the SEC payment as a tool to launch a new lawsuit and drag the case further. Mark Fagel said this, explaining that if an appeal is filed, the case will go to the Court of Appeals. It generally takes 10-11 months for this court to issue a ruling, which can uphold the lower court's decision or send the case back for further proceedings.

Does the SEC play fair in the crypto playbook? Wait, let's see.