A popular legal expert believes that Ripple could agree with the SEC’s request to appeal a recent ruling in the ongoing lawsuit between the two entities.
James Murphy, who is known by the online moniker MetaLawMan, said that Ripple could choose to agree that the SEC has “substantial grounds for difference of opinion” on the ruling, which would allow the SEC to appeal the decision to the Second Circuit Court of Appeals.
Read Also: Just In: SEC Says Ripple and XRP Victory Is Wrong, Set To Appeal: Details
Murphy noted that this would be a strategic move for Ripple, as it would allow the company to get a ruling from a higher court on the issue of whether XRP is a security or not.
“If the Second Circuit reverses the SEC’s win on institutional sales, then there would be no need for a trial or a penalty phase,” Murphy said.
However, Murphy also acknowledged that it is possible that Ripple could choose to oppose the SEC’s appeal request. In this case, Ripple would argue that Judge Analisa Torres got it right in her summary judgment decision and that an appeal would be a waste of time.
SEC’s Appeal Request: What You Need to Know
The SEC filed its request for an interlocutory appeal on July 20, 2023. The agency is seeking to appeal the ruling that found that Ripple’s past direct sales of XRP to institutional investors were not securities offerings.
The SEC argues that Judge Torres’s ruling was “clearly erroneous” and that it “upsets settled law.” The agency also claims that the ruling will have “far-reaching implications” for the regulation of digital assets.
Ripple has until August 16, 2023, to respond to the SEC’s appeal request. The company has not yet announced its plans for a response.
Read Also: Gensler Silent on XRP Ruling Appeal, Says SEC is Still Deliberating on Summary Judgment
Possible Implications of Ripple’s Response
If Ripple agrees to the SEC’s appeal request, the case will be sent to the Second Circuit Court of Appeals for a hearing. The appeals court will then decide whether to uphold or overturn Judge Torres’s ruling.
If Ripple opposes the SEC’s appeal request, the case will proceed to trial. The trial will focus on the issue of whether XRP is a security.
The outcome of the SEC’s appeal request could have a significant impact on the future of Ripple and the regulation of digital assets. If the SEC is successful in overturning Judge Torres’s ruling, it could pave the way for more aggressive enforcement actions against cryptocurrencies and related companies.
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It remains to be seen what Ripple will decide to do, but the SEC’s appeal request has certainly raised the stakes in the ongoing lawsuit.
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