SEC Appeal Dismissal in XRP Lawsuit Could Take Weeks

Overview
The U.S. Securities and Exchange Commission’s (SEC) pending appeal in the Ripple vs. SEC lawsuit is set for a potentially lengthy dismissal process. According to former SEC attorney Marc Fagel, the commission must complete an internal vote to drop its appeal before any formal dismissal can occur. Once that vote is finalized, Ripple and the SEC will need to submit paperwork to officially close their respective appeals and allow the original district court ruling to take effect.

Appeal Dismissal Process

1. Withdrawal of Ripple’s Appeal
   Ripple voluntarily withdrew its own appeal shortly after the district court ruled in its favor on summary judgment, narrowing the dispute to the SEC’s challenge.

2. SEC Commission Vote
   The SEC must convene a vote among commissioners to approve dismissing its appeal. This internal vote is a standard procedural step and has no set deadline.

3. Filing of Dismissal Papers
   Only after the vote can both parties file stipulations of dismissal with the U.S. Court of Appeals. At that point, the appellate court will dismiss the appeal, and the district court’s ruling becomes final.

Timeline and Key Steps

• Weekly SEC Meetings
  Rumors that the SEC’s July 3 meeting might decide the dismissal have been debunked. These gatherings follow a regular agenda and are unrelated to specific litigation outcomes.

• Uncertain Duration
  Because there is no statutory timeline for the commission vote or subsequent filings, the appeal dismissal could stretch for several weeks—or longer if delays occur within the SEC or at the appellate court.

• Finality of Judgment
  Only once dismissal is docketed will Ripple’s partial victory—finding that XRP is not a security in certain transactions—stand as binding precedent.

Implications for XRP Investors

• Continued Uncertainty
  Investors holding XRP must brace for sustained regulatory uncertainty. The longer the appeal remains alive, the greater the potential for market volatility.

• Price Sensitivity
  XRP’s price historically reacts to legal developments. News of delays can trigger sell-offs, while any indication of expedited dismissal may spur purchases.

• Strategic Positioning
  Traders should consider hedging positions or setting stop-loss orders to manage risk during this extended period of legal limbo.

What’s Next

• Monitor Court Filings
  Market participants should watch for the SEC’s notice of appeal withdrawal and any stipulation of dismissal filed by the parties.

• Stay Informed on SEC Announcements
  While regular commission meetings won’t set dismissal dates, official SEC releases may outline voting outcomes or scheduling for future agenda items.

• Prepare for Final Judgement
  Once the dismissal is docketed, the appellate court will issue a mandate, cementing the district court’s ruling and ending this chapter of litigation.