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After a partial Ripple’s win against the SEC, many believe that the latter will file an appeal – law expert James Murphy offers four possible future scenarios for the case.
Ripple Wins the Lawsuit against the SEC... or not yet?
On July 13, 2023, Judge Analise Torres partially ruled in favor of Ripple Labs in the case against the U.S. Securities and Exchange Commission’s (SEC), putting an end to a 3-year-long crusade.
The historic victory made the XRP token skyrocket in value and sent the bullish wave to the whole crypto market. However, some believe that the battle is not over yet, as the SEC still has the option to file an appeal.
Law expert James Murphy known on Twitter as “MetaLawMan” has shed some light on the matter. In his recent Tweet of July 25, Murphy identified four options the SEC currently has and described how each could work.
So, What Could the SEC Do Next?
According to the expert, the first option on the table for the SEC is to file a request for an interlocutory appeal. At the moment, the SEC doesn't have the unilateral right to appeal as the final judgment has not been entered yet. To proceed with an interlocutory appeal, the SEC would need to ask the permission of Judge Torres and the Second Circuit Court of Appeals. To get this permission, Murphy explains that the SEC would need to prove that:
“The ruling involves a controlling question of law;
There is substantial grounds for difference of opinion on that question;
An immediate appeal may materially advance the litigation.”
There’s no deadline for the initial request, although it’s likely to be done within 30 days. In case Judge Torres agrees, the SEC would have 10 days to seek permission from the Second Circuit Court of Appeals.
The second option for the SEC is to start a trial on the aiding and abetting claim against Larsen and Garlinghouse and file a regular appeal after.
Another potential path for the SEC is to drop the claim against Larsen and Garlinghouse. This would allow the SEC to take an immediate appeal without seeking permission.
Finally, the SEC has the option to settle, although Murphey believes that it’s highly unlikely due to the political considerations.
James Murphy concludes that the first option is the most probable because the SEC is under pressure to get the Torres decision reversed and because the Ripple case could influence lawsuits against other crypto platforms such as Coinbase and Binance. Overall, the expert is quite optimistic about the Ripple’s chances:
“I expect the SEC to file a request for interlocutory appeal within the next 2 weeks. I believe it would be in the best interests of Ripple & the #XRPCommunity for the appeals process to start now--rather than a year from now. And I like Ripple's chances on appeal.”
Meanwhile, the price of XRP has been shining green in the last 10 days, even though it still hasn’t reached a $1 mark.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.