Could Ripple’s Recent Victory be Short-lived? A Legal Expert Unravels the SEC’s Options

• Noted pro-crypto lawyer, James Murphy, identifies four possible routes the SEC could take to contest the recent ruling in the Ripple case.
• The SEC’s course of action might exert profound influence on its pending cases against prominent crypto exchanges, Coinbase and Binance.

In the constantly evolving legal battle between the Securities and Exchange Commission (SEC) and Ripple, James Murphy, a renowned pro-crypto attorney, has outlined the four likely strategies the SEC might employ to appeal against the recent XRP ruling.

SEC v. @Ripple update.

There's a lot of debate about what the SEC will do next in the Ripple case.

I believe there are at least 4 options under consideration…

— MetaLawMan (@MetaLawMan) July 25, 2023

Decoding SEC’s Countermeasures

Navigating the complex litigative landscape of the SEC vs. Ripple case, Murphy brings to light four paths the SEC could follow. The first one involves filing an interlocutory appeal, essentially challenging Judge Analisa Torres’ ruling amidst the ongoing litigation.

Given that a final judgment has yet to be decreed, the SEC must secure the green light from both Judge Torres and the Second Circuit Court of Appeals to carry this motion forward. Three crucial conditions must be met for the appeal to be granted:

1. The ruling involves a controlling legal question.
2. There exists significant discordance of opinion regarding this question.
3. An immediate appeal might significantly expedite the litigation.

Assuming these criteria are fulfilled, the SEC would have the necessary approval to challenge the ruling, potentially altering the lawsuit’s course. Ideally, this process should be completed within a month.

Murphy further highlights three alternative courses of action. The SEC could opt for a conventional appeal post-trial against Ripple executives Chris Larsen and Brad Garlinghouse or drop the charges against them and directly file an appeal. Lastly, the SEC could consider a settlement, albeit Murphy finds this option least probable.

Implications for Other Crypto Lawsuits

Murphy indicates that the SEC’s decision could significantly affect its ongoing lawsuits against top-tier cryptocurrency exchanges, Coinbase and Binance, asserting that there is substantial political pressure on SEC Chairman Gensler to overturn Judge Torres’ decision.

The widespread re-listing of XRP by global exchanges has amplified the focus on the SEC’s next steps. While Murphy anticipates an interlocutory appeal within the forthcoming two weeks, he believes a settlement to be improbable at this juncture.

Furthermore, he asserts that the SEC’s forthcoming actions will heavily impact the XRP community. Nevertheless, he expresses confidence in Ripple’s prospects in the event of an appeal.

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