Eleanor Terrett, a Fox Business journalist, reports that a former SEC lawyer believes the agency will “probably” appeal Judge Analisa Torres’s July 2023 ruling in the Ripple vs SEC case. The lawyer noted that many at the SEC view the outcome regarding Ripple’s programmatic XRP sales as incorrect and in need of appeal. The SEC has until October 7 to file an appeal, making this a key area to watch as the case progresses.

The former SEC lawyer revealed that many in the agency believe Judge Torres erred in her decision on Ripple’s programmatic XRP sales. This sentiment may drive the SEC to seek an appeal, especially as they argue the decision is “not good law.” These comments align with other industry insiders who have suggested the SEC may appeal this decision.

Despite the potential appeal, the SEC does not dispute the judge’s ruling that XRP itself is not a security. Any appeal would likely focus on the classification of programmatic sales and whether they meet the Howey Test criteria for determining investment contracts.

Legal experts have weighed in on the case. Attorney John Deaton, who filed an Amicus Brief on behalf of XRP holders, argued that Judge Torres’s ruling on programmatic sales was fact-specific and based on the unique circumstances of the Ripple case. He noted that while the SEC could argue secondary XRP sales might meet Howey Test criteria in other cases, the facts in the Ripple case did not satisfy those standards.

Deaton also pointed out that even if the SEC could overcome the third prong of the Howey Test, it would still need to demonstrate a ‘common enterprise,’ which was a weak point in the case. He estimates an appeal would be costly and time-consuming with a low probability of reversing the initial decision.

Other lawyers, like Jeremy Hogan, have questioned whether an appeal aligns with the SEC’s mission of investor protection and capital formation. Some argue that persisting with the Ripple case could divert the agency from its other regulatory duties.

Bill Morgan has estimated a 60% likelihood that the SEC will appeal the programmatic sales part of the ruling.

Meanwhile, Ripple President Monica Long discussed the company’s future and how the court’s decision benefits XRP. Long stated that the victory provides more certainty, and the company is now exploring new business opportunities, including the introduction of the RLUSD stablecoin and continued development of the XRP Ledger.