Benzinga - In Ripple’s (CRYPTO: XRP) ongoing lawsuit, the U.S. Securities and Exchange Commission (SEC) does not have a good chance of winning its appeal against the company.
Lawyer Bill Morgan who is closely following the lawsuit said in an X post that all the odds are in favour of Ripple and there is only a 3%-14% chance for SEC having success in in its appeal against Ripple, CoinTelegraph reported.
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XRP attorney John Deaton said that although the SEC cannot appeal immediately, it can appeal soon for parts of the case and was a reason it chose to drop the case against company executives sooner.
Deaton added that for a possible appeal, the penalty phase of the case must be completed first.
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While the attorney believed the SEC would look at $770 million in fines from the Ripple lawsuit, the company might argue that on-demand liquidity transactions plus the legitimate business costs should be exempted, CoinGape reported.
Bloomberg Intelligence analyst Elliott Stein said the regulator, “wanted to avoid bad facts coming out at trial of the individuals that could jeopardize the win the SEC got on direct institutional sales.”
Last week, the SEC dropped all charges filed against Ripple CEO Brad Garlinghouse and Executive Chair Chris Larsen.
Price Action: The XRP token price is trading 2.6% higher at the time of writing while the past week reported a 6.6% surge.
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The U.S. regulator fought a court battle against Ripple for three years wherein the latter won that the sale of XRP tokens on the crypto exchange does not go against any securities law. However, the lawsuit led to XRP losing its presence on multiple major crypto exchanges.
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