- Ripple’s Chief Legal Officer has challenged SEC’s appeal move, asserting limited authority.
- Ripple is poised to counter SEC’s interlocutory appeal filing.
- A recent pretrial scheduling order by Judge Torres has set the stage for a 2024 jury trial.
Ripple’s Chief Legal Officer, Stuart Alderoty, has responded to the recent announcement by the U.S. Securities and Exchange Commission (SEC) regarding its intention to appeal Judge Torres’s partial summary judgment that favored Ripple.
Ripple Set to Counter SEC’s Appeal Request, Says Alderoty
Alderoty asserts that the SEC does not have the authority to launch an appeal. To do so, they are seeking the court’s permission to proceed with what is known as an “interlocutory” appeal. Conversely, Ripple plans to present its counter to the court filing within the coming week. A tweet from Alderoty elaborates on the matter, stating:
"The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned."
Alderoty’s standpoint is well-grounded, particularly given the ongoing status of the case. Notably, just a short time before the SEC announced its appeal intent, Judge Analisa Torres issued an order to establish a timeline for the upcoming proceedings. This order aims to schedule a jury trial for the ongoing legal matter during the second quarter of 2024.
Ripple & SEC to Declare Trial Blackout Dates by August 2023
The order additionally mandates both involved parties to communicate their blackout dates for the trial by August 23, 2023. This step is taken to confirm the availability and preparedness of both parties leading up to the trial date.
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In the aftermath of Judge Torres’s ruling in favor of Ripple, the broader community had speculated on whether the SEC would indeed seek an appeal. The SEC’s chair, Gary Gensler, offered little insight on this matter, maintaining an enigmatic stance when questioned.
However, the recent action taken by the SEC demonstrates an unwavering commitment, as indicated by the request for an interlocutory appeal. The SEC’s conviction persists, as they assert that Ripple’s XRP fundamentally qualifies as a security. Pursuing an interlocutory appeal is customary for challenging non-final rulings while a case remains in progress.
On the Flipside
- The SEC’s pursuit of an interlocutory appeal might delay the case’s final resolution, leading to prolonged uncertainty for market participants and investors in XRP.
- The SEC’s request for an interlocutory appeal is not an outright appeal but rather a move to seek permission to appeal.
- While Ripple’s Chief Legal Officer asserts that the SEC does not have the immediate “right” to appeal, the fact that they are pursuing an interlocutory appeal showcases the situation’s complexity.
Why This Matters
The SEC’s pursuit of an interlocutory appeal in the Ripple case marks a pivotal juncture in the ongoing debate over XRP’s classification. As regulatory clarity continues to shape the crypto landscape, this case could potentially set a precedent for how other digital assets navigate their legal standing.
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To learn more about how the Ripple ruling played a pivotal role in Coinbase’s dismissal request, read here:
Ripple Ruling Cited 13 Times in Coinbase’s Dismissal Request
To stay updated on the potential impact of SEC protocols on the pace of Bitcoin ETFs, check out the following:
