- SEC’s motion for an interlocutory appeal in the Ripple case denied by Judge Analisa Torres.
- Legal experts believe the case is less likely to reach the Supreme Court due to the current ruling.
Ripple and SEC’s Tug-of-War: The Verdict So Far
Crypto enthusiasts closely watched the recent developments in the SEC v. Ripple case. In a significant turn of events, Judge Analisa Torres has denied the SEC’s request for an interlocutory appeal. This move by the court has triggered a series of analyses from legal experts, emphasizing the implications of this decision.
The SEC's motion for interlocutory appeal DENIED.
Which means, the case either goes to trial in April, or goes away.
AND, this Order allowed the Judge to explain parts of her ruling even better, making appeal that much harder for the SEC to win.
— Jeremy Hogan (@attorneyjeremy1) October 4, 2023
The Legal Perspective
Former lawyer Scott Chamberlain offers a critical take on the recent ruling. Chamberlain emphasizes that while the SEC might consider appealing in the future, they are now bound by a factual record that narrows their path to a successful appeal. Given the present circumstances, the possibility of the Ripple lawsuit reaching the Supreme Court appears to be diminishing.
Delving into the specifics, Chamberlain states that the lawsuit doesn’t revolve around groundbreaking legal questions. Instead, it’s about
“applying known law to a complicated fact matrix”
which doesn’t support the SEC’s stance. He pointedly remarks that the SEC’s predicament is akin to attempting an arduous task, almost metaphorically
“pushing sh*t uphill with a pointy stick.”
SEC’s Immediate Appeal Request Denied
In her recent ruling, Judge Torres clarified her stance on the SEC’s plea. The SEC had argued that the court’s July 13 decision on Ripple‘s sales and distributions presented pressing legal questions. However, the judge countered this assertion by stating that the said ruling doesn’t generate any legal dilemmas as claimed by the SEC. Furthermore, she pinpointed that the SEC did not satisfy the burden of proof required to demonstrate a significant ground for varied opinions.
This denial means the SEC cannot initiate an immediate appeal. They will now have to bide their time until the lawsuit concludes, post which they might consider a comprehensive appeal.
Upholding the July 13 Ruling
Ripple’s CLO, Stuart Alderoty, underscored the importance of Judge Torres’ July 13 verdict. On that pivotal day, the judge declared that XRP, in its essence, isn’t a security. Her ruling also categorized Ripple’s institutional sales of XRP as investment contracts. Meanwhile, programmatic sales and other distributions were excluded from this classification. This declaration remains steadfast as the
“law of the land”,
holding ground unless overturned by the Second Circuit or the Supreme Court.