The legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs shows no signs of resolution, as recent developments suggest that the feud could extend into next year and beyond.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has responded to the SEC’s intention to file an appeal against Judge Torres’s partial summary judgment in favor of Ripple. Alderoty argues that the SEC has no “right” to appeal the decision at this stage and is instead seeking permission to file an interlocutory appeal. He also confirmed that Ripple will respond to the SEC’s filing next week.
Alderoty’s stance appears to be accurate, considering that the case is still ongoing. Just hours before the SEC announced its intention to appeal, Judge Analisa Torres issued a pretrial scheduling order to set a jury trial for the ongoing case in the second quarter of 2024. The order instructed both parties to submit blackout dates for trial by August 23, 2023, to ensure their availability leading up to the trial date.
Despite the ruling in favor of Ripple, the SEC is not backing down. Many speculated whether the SEC would appeal the decision, but the regulator’s recent actions indicate otherwise. The SEC remains adamant that Ripple’s XRP is a security and has sought to file an interlocutory appeal against the non-final order. This appeal can be filed while the case is still ongoing.
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While it is uncertain whether the court will grant the SEC the right to appeal, there is a possibility that the regulator may request a stay of Judge Torres’s ruling during the appeal process. Former federal prosecutor James Filan suggests that the SEC seeking a stay of all proceedings pending appeal is not unexpected.
The SEC’s appeal represents a setback for Ripple and its community. However, an eventual judgment in favor of Ripple on appeal could strengthen the belief that victory is imminent when the jury trial begins. Pro-XRP lawyer John Deaton has expressed confidence in Ripple’s success, even in the event of an SEC appeal, stating that he is willing to bet a significant sum on their victory.
As the legal battle continues, Ripple’s XRP continues to trade around $0.626, experiencing a 1.73% decrease according to data from CoinMarketCap.
Overall, the SEC’s appeal against Judge Torres’s ruling in favor of Ripple prolongs the legal battle between the two parties. The outcome of the appeal and the subsequent jury trial will have significant implications for Ripple, the SEC, and the broader cryptocurrency community.
