Amid the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), the cryptocurrency community is eagerly awaiting the SEC’s next move.
James Murphy, a pro-cryptocurrency attorney, outlined four potential options the SEC might consider in response to Ripple’s partial victory.
Will the SEC file an interlocutory appeal against Ripple?
The first option is a request for an interlocutory appeal from the SEC. Since a final decision has not yet been made, the SEC does not have the right to appeal unilaterally. Instead, it will need permission from Judge Torres and the Second Circuit Court of Appeals to proceed with an interlocutory appeal.
To obtain leave, the SEC must demonstrate that the ruling involves a dominant legal issue, that there are substantial grounds for dissent, and that an immediate appeal is likely to materially advance the litigation.
The second option, according to Murphy, is for the SEC to proceed with the trial on solicitation and conspiracy charges against Larsen and Ripple CEO Brad Garlinghouse and then file a regular appeal.
A third option is for the SEC to drop the charges against Larsen and Garlinghouse now and file an immediate appeal, which does not require permission. The last option is for the SEC to settle with Ripple.
However, Murphy believes the SEC is likely to choose the first option, which is to file a request for an interlocutory appeal.
In such circumstances, obtaining leave to interlocutory appeals can be time-consuming and potentially delay the overall timetable of the case. However, it is important to note that the timeline may vary depending on the specific circumstances of the case and the viability of the court to consider the request.
On the other hand, Murphy mentioned the intense political pressure on SEC Chairman Gary Gensler to overturn Judge Torres’ decision as soon as possible and the impact this decision has on the SEC’s cases against other cryptocurrency exchanges such as Coinbase, Binance, and Bittrex. Impact.
Political considerations are important as cryptocurrency exchanges around the world relist XRP, making the SEC look bad and motivating progressive congressman Rich Torres and others to step up their criticism of Gensler.
Murphy believes that a settlement is unlikely because it is difficult to imagine the SEC reaching a settlement with Ripple without subjecting Judge Torres’ precedent to an appellate test.
The SEC’s plan for “enforcement oversight” of the cryptocurrency industry hinges on overturning Judge Torres’ decision. As a result, Murphy expects the SEC to request an interlocutory appeal within the next two weeks.
Ultimately, Murphy believes it would be best for Ripple and the XRP community to begin the appeals process now rather than a year from now. He also thinks Ripple has a chance of winning on appeal.
As the legal battle between Ripple and the SEC continues, the cryptocurrency community will be eagerly watching developments and next steps.
