The U.S. Securities and Exchange Commission (SEC) recently lost a motion for an interlocutory appeal in its case against Ripple Labs, the company behind the cryptocurrency XRP. District Judge Analisa Torres denied the SEC’s motion, leading to a considerable stir in the legal and crypto communities.
Think this is over? Stay tuned! Here, pro lawyers reveal potential SEC appeals possibilities. Legal experts say an appeal is possible, but not immediately.
Legal Experts on How and When SEC Can Appeal?
Legal experts have weighed in on the situation, indicating that while the immediate appeal was denied, the possibility of an appeal still exists once the entire case reaches its conclusion. Max Schatzow, a respected figure in legal matters, noted that this situation is consistent with many other civil cases, leaving room for an appeal after the final judgment.
Cody Carbone, another legal expert, echoed this sentiment; she points to the fact that there is a loophole where the SEC’s appeal process remains available post-trial. Whereas, Elliott Z. Stein, Bloomberg’s senior litigation analyst, explained that the recent denial only pertains to the immediate appeal before a final judgment, and standard litigation processes allow for appeals once the trial concludes and all remedies are determined.
In short, the SEC can only appeal post-trial final judgment is given on the case. Until then, XRP is pushed further downhill as the non-security status will be sealed only after the final trial. Though court has asked both parties to think about the settlement possibilities. And if the SEC fails to bring any documents adding to their claims, the case will favor Ripple.
Why did the SEC fail?
Australian lawyer Bill Morgan highlighted that the SEC failed to meet three critical elements for an appeal. The court ruled that there was no relevant legal question, no substantial differing opinions, and no faster resolution with an appeal. This was more than enough for the SEC to lose.
What Happened so far?
Judge Analisa Torres pointed out the SEC’s failure to present a straightforward question that could be addressed without a deeper examination of the case’s specifics. The court also dismissed the SEC’s reference to the Terraform Labs case, stating that potential disagreements between courts cannot be based on mere speculation. Additionally, the court highlighted the SEC’s inability to provide evidence demonstrating how permitting the appeal would significantly expedite the case.
Yesterday’s court ruling has given some hope to the XRP price, which has seen a notable surge of over 4%. It juggles between $0.50 and $0.54 and can go towards $0.66 if it maintains the resistance level at $0.50 for another week. Since there will not be any SEC update this year, it will give an open ground for XRP to manifest a bull rally.