The long-standing legal drama between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is far from over. While Ripple scored a partial victory in July when Judge Analisa Torres ruled that the XRP token was *not* a security when sold on exchanges to retail investors, the SEC may still appeal the decision.

**What Led to This Point?**

On July 13, Judge Torres delivered a pivotal ruling, declaring that XRP is only classified as a security when sold directly to institutional investors, but not when traded on exchanges. This split decision has left room for further legal maneuvering, and experts believe the SEC could challenge this verdict by the October 7 deadline.

Several prominent voices in the crypto space are now weighing in on what might come next for Ripple and XRP.

**SEC Appeal in the Works?**

Fox Business reporter Eleanor Terrett has cited sources, including a former SEC lawyer, who predict that the agency will likely appeal Judge Torres’s ruling. While the SEC recently dropped charges against Ripple’s top executives, Chris Larsen and Brad Garlinghouse, speculation is growing that the appeal may focus on XRP's “programmatic sales”—sales made on cryptocurrency exchanges.

These sales, where XRP is purchased through order books rather than directly from Ripple, are central to the case and could become a focal point of a possible appeal.

**Expert Opinions: A Divided Legal Field**

Several legal experts and XRP advocates have weighed in on the potential ramifications of an SEC appeal, offering various interpretations of the case’s nuances.

**John Deaton: Will the SEC’s Appeal Make Sense?**

John Deaton, a Massachusetts Senate candidate and outspoken XRP supporter, believes an appeal may not hold water. Deaton points out that Judge Torres’s ruling was very fact-specific, particularly concerning the second criterion of the Howey Test, which defines a security. According to Deaton, the SEC failed to prove a “common enterprise” in XRP’s programmatic sales. Without this key element, any appeal from the SEC might not stand a strong chance.

The Howey Test consists of four criteria to determine whether an investment qualifies as a security: an investment of money, involvement in a common enterprise, expectation of profits, and the efforts of others driving those profits. The court determined that XRP’s sale on exchanges did not meet the requirement for an expectation of profit based on the efforts of Ripple.

Deaton played a significant role in Ripple’s defense, submitting affidavits from 3,800 XRP holders, which Judge Torres referenced in her decision.

**Fred Rispoli: Distinguishing Programmatic Sales from Secondary Sales**

Attorney Fred Rispoli, another legal expert closely following the case, noted that any potential appeal would likely focus on programmatic sales, as secondary sales—transactions between third parties on exchanges—were not included in the court’s original ruling. This means an appeal concerning secondary sales would be unlikely to succeed, as they weren’t part of the initial decision.

Rispoli also made a bold prediction: if the legal uncertainties around XRP clear up, the cryptocurrency could surpass its previous all-time high of $1.96, set in 2021.

**Jeremy Hogan: Has the SEC Lost Its Way?**

Attorney Jeremy Hogan, known for his extensive coverage of the Ripple vs. SEC case, criticized the SEC’s approach. Hogan, a partner at Hogan & Hogan law firm, argues that the agency’s pursuit of an appeal might be counterproductive to its mandate of protecting investors and facilitating capital formation. He believes the SEC should consider the broader implications of an appeal, especially for smaller retail investors who trade XRP on exchanges.

**The Bigger Picture: What’s at Stake?**

The potential appeal has drawn strong reactions from the crypto community, including investigative journalist Jungle Inc Crypto. He has called on the SEC to reflect on its motivations, questioning whether the regulator’s efforts are truly in the best interest of investors or if it’s targeting Ripple without considering broader market impacts.

With the SEC contemplating an appeal, Ripple’s legal battle is far from over, and the outcome could have far-reaching consequences for the future of cryptocurrency regulation in the U.S.

**What Lies Ahead?**

As the October 7 deadline approaches, all eyes will be on the SEC’s next move. Will they double down and appeal the court’s decision, potentially dragging the case out even further? Or will Ripple finally be able to put this chapter behind them and push forward in the crypto market?

For now, the only certainty is that the Ripple vs. SEC saga remains one of the most closely watched legal battles in the cryptocurrency world.