In a new development in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), U.S. District Judge Analisa Torres has denied the SEC’s plea for an interlocutory appeal. This decision is seen as a setback for the SEC, which sought an early appeal despite the impending trial involving Ripple’s top executives, Brad Garlinghouse and Chris Larson.
John Deaton Shares Insights
In a recent interview with Thinking Crypto, John Deaton, a notable figure closely monitoring the case, elucidated his thoughts. Deaton highlighted that interlocutory appeals are traditionally pursued without a pending trial, making the SEC’s request unusual.
Predictions Fall Short
Contrary to his earlier prediction that Judge Torres would grant the appeal but reaffirm her initial ruling, the judge rejected the SEC’s request. Deaton acknowledged that this move by Judge Torres was a clear message to the SEC, as it failed to provide a substantial reason for the appeal, especially with a trial date set for April 23, 2024.
Unveiling SEC’s Strategic Error
Deaton outlined that the SEC’s appeal attempt was anchored on the premise that a decision in the TerraForm case by Judge Raykoff contradicted Judge Torres’s ruling in the Ripple case. However, this approach was deemed a strategic blunder on the SEC’s part, enabling Judge Torres to clarify her stance further.
Community Interpretations and Clarifications
Earlier, the crypto community had diverging interpretations of Judge Torres’s ruling. Some viewed it as an indication that XRP, when traded on an exchange, wasn’t a security, potentially affecting other tokens. However, Judge Torres clarified that her ruling did not categorically rule out a token from being deemed a security if sold on an exchange.
Setting the Stage for Trial
The denial of the SEC’s interlocutory appeal request underscores the regulator’s recent string of notable losses and paves the way for the trial involving Ripple’s executives, now scheduled for April 23, 2024. This decision is perceived as a crucial step towards resolving the uncertainties surrounding the regulatory status of cryptocurrencies.
He elaborated on this during his interview with Thinking Crypto, discussing the SEC’s inconsistent approach towards crypto cases and how this ruling clarifies the trial, reaffirming Judge Torres’s earlier decisions.