In an interview on Crypto Law TV, attorney James Murphy, also known as “MetaLawMan,” sat down with host Kristi Warner to discuss the latest developments in the XRP lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC). Murphy discussed the SEC’s recent appeal and the potential avenues Ripple might explore in response.
Murphy began by affirming his anticipation of the SEC’s decision to appeal Judge Analisa Torres’ summary judgment, which had ruled that Ripple’s institutional sales of XRP were unregistered securities, while clarifying that XRP itself is not a security. “I thought that the SEC would appeal,” Murphy stated. “Anytime you lose some or all of a case, you can appeal after final judgment is entered.”
He emphasized that the SEC’s attempt at an interlocutory appeal—a mid-case appeal—signaled their dissatisfaction with the initial ruling. “They were so horrified by the decision of Judge Torres ruling that XRP is not a security […] that horrified them, and they tried to appeal immediately,” he noted.
Murphy outlined the primary issues he believes the SEC will focus on during the appeal. Most importantly, the SEC is likely to contest Judge Torres’ determination that transactions of XRP on secondary markets were not investment contracts. “That, I think, is extremely likely issue number one on appeal,” Murphy said.
Furthermore, the SEC may also challenge the judge’s decision to award zero disgorgement, a remedy requiring the violator to pay back ill-gotten gains. Murphy explained that recent precedent in the Second Circuit Court of Appeals requires victims to have suffered monetary losses for disgorgement to be applicable. “The SEC didn’t have tha 8 […] The retail XRP holders were the ones who were hurt,” he added.
Although less probable, Murphy mentioned the SEC might dispute the $125 million civil penalty imposed on Ripple. “I think this would be a very, very weak argument […] The judge has a lot of discretion,” he opined.
XRP Lawsuit: Will Ripple Cross Appeal?
Murphy also discussed the reactions by CEO Brad Garlinghouse and CLO Stuart Alderoty hinting at a possible cross-appeal, as Bitcoinist reported. Murphy expressed strong support for this move, particularly concerning the classification of institutional sales as investment contracts.
“I’m a very big fan of bringing a cross-appeal in this case,” he asserted. Murphy argued that institutional buyers purchased XRP at wholesale prices for resale, akin to wholesalers buying commodities like oranges or diamonds—not as investments in Ripple’s enterprise. “They were not investing in Ripple […] It’s not an investment contract,” he emphasized.
Murphy provided a detailed timeline of the appeals process, indicating that both parties have specific deadlines to file briefs and identify issues for appeal. He estimated that a final decision from the Second Circuit Court of Appeals might not arrive until the first quarter of 2026. “The rule of thumb is it’s going to be a little over a year […] So my guess is somewhere in the neighborhood of the first quarter 2026 we will see a decision,” he projected.
He also mentioned the possibility of various industry stakeholders filing amicus briefs, which could potentially extend the timeline. “I think we’re going to see a lot of amicus briefs filed […] Coinbase is clearly signaling this is extremely important,” Murphy said.
At press time, XRP traded at $0.52.
