The SEC’s Potential Options in the Ripple Lawsuit
Since the conclusion of the Ripple vs SEC lawsuit, there has been speculation on what the SEC’s next move will be. Judge Analisa Torres ruled that the sale of XRP is not a security, which contradicts the SEC’s claim. The SEC has hinted at appealing the decision but has not provided any details on when this will happen.
Four Potential Options SEC Could Consider in Ripple Lawsuit
According to legal expert James Murphy (MetaLaw Man), there are four potential options that the SEC may consider in its lawsuit against Ripple:
1. Filing a request for an interlocutory appeal: The SEC would need permission from Judge Torres and the 2nd Circuit Court of Appeals. They would have to explain why they believe the ruling involves a significant legal question and how an immediate appeal would advance the case.
2. Proceeding with a standard appeal after a trial on the aiding and abetting claim against Larsen and Garlinghouse.
3. Dropping the claim against Larsen and Garlinghouse and pursuing an immediate appeal, which does not require permission.
4. Settling the case.
Why Is the SEC Most Likely To Appeal?
MetaLaw Man believes that the SEC is likely to request an interlocutory appeal due to political pressure on Chair Gary Gensler to reverse the Torres decision quickly. The decision impacts the SEC’s cases against other crypto exchanges like Coinbase, Binance, and Bittrex. The re-listing of XRP by crypto exchanges worldwide is also causing embarrassment for the SEC and drawing criticism. A settlement is seen as highly unlikely.
Hot Take
The SEC’s potential appeal in the Ripple lawsuit reflects the ongoing uncertainty and regulatory challenges faced by the crypto industry. The outcome of this case will have significant implications for not only Ripple but also other cryptocurrencies and exchanges. As the legal battle continues, it remains to be seen how this will shape the future of crypto regulation.
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