Expert predicts SEC has 90% chance of winning Ripple appeal

Dennis Kelleher, the CEO of Better Markets, has shared his perspective on the likely outcome of an appeal in the legal dispute between Ripple (CRYPTO:XRP) and the US Securities and Exchange Commission (SEC). 

According to Kelleher, the SEC has a 90% chance of prevailing if it decides to appeal the recent ruling. 

Kelleher expressed criticism of Judge Analisa Torres' decision, which granted protections under securities laws to institutional investors while excluding retail investors. 

He argued that this ruling upended established legal principles and noted that it deviates from the positions taken by other judges in similar cases. 

Judge Torres had previously ruled that Ripple's XRP sales to institutional clients constituted investment contracts, whereas programmatic sales did not. 

This decision was contrary to the SEC’s stance that XRP should be classified as a security. 

In response to the ruling, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed confidence that Ripple would prevail if the SEC pursued an appeal. 

Alderoty asserted that the SEC had only a 10% chance of success in an appeal and highlighted Ripple's readiness to pay the $125 million fine imposed by Judge Torres for securities law violations. 

He also suggested that the SEC should reconsider its decision to appeal, deeming it an irrational move. 

Kelleher’s viewpoint contrasts with recent judicial decisions in related cases. 

For instance, Judge Amy Berman Jackson, in a case involving Binance US, adopted a stance similar to that of Judge Torres. 

Judge Jackson ruled that secondary sales of Binance Coin (CRYPTO:BNB) did not qualify as investment contracts and applied the Howey Test, determining that the classification of crypto tokens as securities should be based on the sale method rather than their intrinsic nature. 

This divergence in expert opinions and judicial rulings underscores the ongoing uncertainty and significance of the legal proceedings within the cryptocurrency sector. 

The outcomes of these cases could have far-reaching implications for the regulation and classification of digital assets.

At the time of writing, the XRP price is $0.5989.