4 Options SEC Could Take Next in Ripple Case
Lawyer James Murphy outlined in a series of tweets on Tuesday four options the U.S. Securities and Exchange Commission (SEC) could take in the Ripple case following the ruling by District Judge Analisa Torres regarding XRP. The SEC has indicated that it will appeal the court decision.
- The first option is for the SEC to file a “request for interlocutory appeal.”
- The second option is for the SEC to proceed with a trial on the aiding and abetting claim against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, then file a regular appeal after the trial.
- The third option involves the SEC dropping the claims against Garlinghouse and Larsen now and filing an immediate appeal.
- The fourth option for the SEC is to settle.
Murphy believes that the SEC is likely to take the first option for two main reasons. The first reason is that “there’s tremendous political pressure on Gensler to get the Torres decision reversed asap.” The second reason is that “the decision looms like a dark cloud over the SEC’s cases” against several cryptocurrency exchanges, including Coinbase, Binance, and Bittrex.
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Regarding the settlement option, Murphy believes that it is “unlikely at this point.” He opined: “It’s hard to imagine the SEC settling with Ripple and leaving the Torres precedent untested on appeal.”
Bottom line: Murphy expects the SEC to file a request for interlocutory appeal within the next 2 weeks. He believes it would be in the best interests of Ripple & the XRP Community for the appeals process to start now - rather than a year from now. And he likes Ripple’s chances on appeal.
