Struggle between Ripple and the SEC What Will Happen Next? Experts Assess 4 Possible Outcomes

Experts Assess Possible Outcomes in Ripple vs. SEC Struggle

Source: Bitcoinist; Translation: LianGuaiBitpushNews Tracy

In the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), the cryptocurrency community is eagerly awaiting the SEC’s next move.

James Murphy, a lawyer supportive of cryptocurrencies, outlined four potential options that the SEC may consider in response to Ripple’s partial victory.

Will the SEC file an interlocutory appeal against Ripple? The first option is for the SEC to file a request for an interlocutory appeal. As a final judgment has not yet been made, the SEC does not have the unilateral right to appeal. Instead, it needs permission from Judge Torres and the Second Circuit Court of Appeals to proceed with an interlocutory appeal.

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To obtain permission, the SEC must demonstrate that the decision involves a controlling legal question, there are substantial grounds for a difference of opinion, and an immediate appeal may materially advance the litigation.

According to Murphy, the second option is for the SEC to proceed with the trial against Larsen and Ripple CEO Brad Garlinghouse for aiding and abetting and conspiracy charges and then file a regular appeal. The third option is for the SEC to drop the charges against Larsen and Garlinghouse now and immediately file an appeal, which does not require permission. The final option is for the SEC to reach a settlement with Ripple.

However, Murphy believes that the SEC is likely to choose the first option, which is to file a request for an interlocutory appeal.

In this case, obtaining permission for an interlocutory appeal may take time and could potentially delay the overall timeline of the case. However, it should be noted that the timeline may vary depending on the specific circumstances of the case and the court’s consideration of the request’s feasibility.

On the other hand, Murphy mentioned that SEC Chairman Gary Gensler faces significant political pressure to overturn Judge Torres’ decision and the impact of this decision on the SEC’s cases against other cryptocurrency exchanges such as Coinbase, Binance, and Bittrex.

Political considerations are crucial because cryptocurrency exchanges worldwide have relisted XRP, making the SEC look bad and motivating progressive members of Congress like Ritchie Torres and others to increase criticism of Gensler.

Murphy believes that a settlement is unlikely, as it is hard to imagine the SEC reaching a settlement with Ripple without testing the precedent set by Judge Torres.

The SEC’s “enforcement and regulatory” plan for the cryptocurrency industry depends on overturning Judge Torres’ decision. Therefore, Murphy expects the SEC to request an interlocutory appeal within the next two weeks.

Ultimately, Murphy believes that starting the appeals process now rather than a year later would be the most advantageous choice for Ripple and the XRP community. He also believes that Ripple has a chance to win in the appeal.

As the legal battle between Ripple and the SEC continues, the cryptocurrency community will closely follow the progress of the case and the next steps.

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