A lot has transpired in the ongoing legal battle between the SEC and Ripple, which has become one of the most high-profile crypto lawsuits. Initially, the crypto industry was rejoicing when it appeared the lawsuit had come to a close. However, recent developments have caused concern among the community, as there is a chance that Ripple may be deemed a security.
Well, the judge presiding over the case, Judge Torres’ decision allowing the SEC to request an interlocutory appeal, could change many things in the XRP court case.
For starters, an interlocutory appeal is a type by a plaintiff or a defendant to address specific legal issues before the entire case is concluded. That is the same one the SEC is requesting.
Apparently, they are uncomfortable with the judge declaring XRP as non-security in many scenarios. For instance, buying and selling XRP in an exchange does not make it a security. It is only when there's a "contractual agreement." Well, that's a totally different case now.
Immediately after Ripple received that ruling on the 13th of August, many things changed, and it looks like the SEC doesn't like that. Back then, they had immediately hinted at filing a possible appeal. And now, they have officially received approval and a limited deadline to file their appeal about the previous ruling.
The Securities and Exchange Commission has until September 8th to file any appeal, while Ripple has until September 1st to file a similar appeal. Assuming the SEC files a motion and it is accepted, this is when the actual appeal starts.
But it seems Ripple isn't comfortable with the new impending appeal. Of course, the crypto project is aware that the SEC getting success in their appeal will change a lot for them.
Already Stuart Alderoty, Ripple’s Chief Legal Officer, publicly voiced his disdain regarding the call for appeals. In his opinion, the court shouldn't grant the SEC's motion for any case. But the law is the law no matter whose ox is gored.
The SEC's Position Tough, an Expert Says
Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at ConsenSys spoke about the recent development while pointing out that the SEC will find it very hard in their position. This is because the judge might have probably looked at every area of the SEC and Ripple lawsuit before giving the previous ruling. So appealing might not mean much in this case. In other words, this expert was simply saying that Ripple has more chances here than the SEC.
Moreover, the legal standard required for an interlocutory appeal is difficult to meet in most cases. And to complicate the situation, some of the statements the Securities and Exchange Commission made after the previous ruling might give them out in the appeal. But there's another angle here.
Dave Rodman, founder and managing partner of the Rodman Law Group, says the SEC appeal could put the entire case in limbo. Apparently, the two parties will wait while the appeal gets sorted out before continuing with the original case.
What does this mean? That signifies the crypto community might be seeing more drama between the SEC and Ripple. But at what cost? Probably the crypto market.