In a recent development surrounding the SEC case, David Schwartz, the Chief Technology Officer (CTO) at Ripple, addressed the ongoing debate regarding the Securities and Exchange Commission’s (SEC) next course of action. Notably, Schwartz asserted that the SEC cannot file an immediate appeal due to unresolved issues between the parties involved.
SEC’s Potential Options Examined
Earlier, legal expert James “MetaLawMan” Murphy put forward four potential options that the SEC might consider for its next move. Firstly, Murphy speculated that the SEC could request an interlocutory appeal. Secondly, the regulatory agency may choose to proceed with the trial focusing on the aiding and abetting claim against Ripple executives Brad Garlinghouse and Chris Larsen.
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Thirdly, Murphy suggested that the SEC could drop its claim against Garlinghouse and Larsen to file an immediate appeal, challenging Judge Torres’ ruling. Notably, this approach would not require seeking permission from Judge Torres and the Second Circuit. Lastly, Murphy opined that the SEC could settle with Ripple, although he expressed skepticism about the likelihood of that happening.
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Ripple CTO Counters Immediate Appeal Possibility
Schwartz’s comments came in response to MetaLawMan’s analysis, which sparked reactions from XRP enthusiasts. Schwartz took to Twitter today to assert that the Securities and Exchange Commission cannot file an immediate appeal by dropping its case against Ripple executives.
According to Schwartz, Judge Torres’s decision failed to fully resolve the dispute between the parties, particularly concerning the remedies aspect. He emphasized that the parties have yet to argue about remedies following the court’s ruling.
Given Schwartz’s statement ruling out the possibility of an immediate appeal from the SEC, the regulatory agency may consider exploring any of the three options proposed by MetaLawMan.
My understanding was that they don't have option 3 because the summary judgment ruling doesn't fully resolve the dispute between Ripple and the SEC. If nothing else, remedies haven't been argued. An I remembering wrong?
— David "JoelKatz" Schwartz (@JoelKatz) July 26, 2023
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Ripple-SEC Lawsuit Continues
While Judge Torres recently ruled on significant aspects of the lawsuit, it is important to note that the case remains far from over in the Southern District of New York. The judge determined that Ripple’s programmatic XRP sales on digital exchanges, totaling over $720 million, do not qualify as securities. However, she deemed Ripple’s direct XRP sales to institutional clients, amounting to $728.9 million, as securities.
It is worth noting that the judge has not yet pronounced a verdict on the aiding and abetting charges against Ripple’s executives. Furthermore, the court has yet to decide the amount of the fine Ripple will have to pay for violating securities law through its XRP sales to institutional investors.
Based on the ruling, these unresolved issues will proceed to trial. The court is expected to announce the trial date in due course.
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