- Pro-crypto lawyer James Murphy analyzed the SEC’s plan to appeal the XRP ruling and listed four likely paths that the regulator can take.
- The Securities and Exchange Commission could consider going through a trial against Ripple executives Chris Larsen and Brad Garlinghouse.
- The lawyer explains how there is pressure on the regulator to file an interlocutory appeal as the ruling weighs heavily on SEC lawsuits against Binance and Coinbase.
Pro-crypto lawyer, James Murphy, evaluated the Securities and Exchange Commission (SEC) vs Ripple lawsuit and the likely options that the regulator can exercise in appealing Judge Analisa Torres’ ruling. Murphy explains the four options facing the Securities and Exchange Commission and their impact on the XRP holder community.
SEC vs Ripple appeal: Four options facing the regulator
Lawyer John Murphy laid out the four options that the US financial regulator can exercise in the SEC vs Ripple ruling.
The first option is filing for an interlocutory appeal. This means Judge Analisa Torres’ ruling in the SEC vs Ripple lawsuit will be appealed during the course of the litigation.
No final judgment has been entered yet, therefore, the SEC needs permission from the ruling Judge Torres and the Second Circuit Court of Appeals to proceed in this case. Three key requisites on which such an appeal will be granted are:
- The ruling involves a controlling question of law.
- There is substantial ground for difference of opinion on that question.
- An immediate appeal may materially advance the litigation.
If these three conditions are met, the SEC will have the requisite permission to appeal the ruling and attempt to change the outcome of the lawsuit. Ideally, this process needs to be completed within a 30-day timeframe.
The second option facing the regulator is to go to trial against Ripple executives Chris Larsen and Brad Garlinghouse and file a regular appeal. Third, the SEC could drop the claim against Ripple executives and take an immediate appeal – no permission needed – or resort to the final and fourth option of settlement.
In Murphy’s experience, a settlement is unlikely and the regulator is likely to resort to option one.
SEC’s next steps could directly influence Coinbase and Binance lawsuits
The pro-crypto lawyer explains that there is tremendous political pressure on Gensler to get the Torres decision reversed as looms over the regulator’s cases against two large cryptocurrency exchanges, Coinbase and Binance.
As exchanges worldwide went on an XRP re-listing spree, it shifted attention to the ruling and the SEC’s next steps. Murphy argues that a settlement is unlikely at this point and an interlocutory appeal is likely within the next two weeks.
The lawyer believes that the SEC’s actions would be in the interest of the XRP Community and he likes the payment firm’s chances on appeal.
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