In response to the recent request by the U.S. Securities and Exchange Commission (SEC) to appeal Judge Analisa Torres’ court ruling, leading blockchain company Ripple has announced that it will be filing a response. The SEC’s request pertains to the court’s ruling on Ripple’s programmatic sales of XRP and its distribution of another cryptocurrency owned by the company.
Stuart Alderoty, Ripple’s General Counsel, confirmed the company’s intent to address the SEC’s appeal request via a tweet. He stated that Ripple will officially file its response with the court by next week. Alderoty also clarified that the SEC’s move to request permission for an interlocutory appeal stems from the fact that the regulator does not yet have the right to file a direct appeal.
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. https://t.co/zCeVZhYfxc
— Stuart Alderoty (@s_alderoty) August 9, 2023
An interlocutory appeal is a type of appeal filed by a party challenging a court’s decision when unresolved issues still exist within a lawsuit. In this case, several unresolved matters remain in the ongoing legal battle between the SEC and Ripple. Notably, Judge Torres recently scheduled a jury trial to address the remaining aspects of the case. The trial is slated to begin in the second quarter of 2024 and is aimed at resolving the SEC’s case against Ripple executives Brad Garlinghouse and Chris Larsen.
To proceed with an interlocutory appeal, the party seeking the appeal—in this case, the SEC—must satisfy three key criteria. Legal expert James “MetaLawMan” Murphy outlined these criteria. Firstly, the SEC must demonstrate that Judge Torres’ decision involves a controlling question of law. Secondly, the SEC must argue that there are sufficient grounds for differing opinions on the matter. Lastly, the regulatory agency must establish that an immediate appeal could furnish substantial materials to advance the lawsuit.
🚨NEW: Judge Torres says the Court will seek to schedule a jury trial for the @SECGov/@Ripple case in the second calendar quarter of 2024.
Torres has ordered both parties to submit blackout dates for trial by Wednesday, August 23rd. See the full deadline schedule below. 👇🏼 pic.twitter.com/3GrE4FDPEu
— Eleanor Terrett (@EleanorTerrett) August 9, 2023
This latest development adds another layer of complexity to the SEC v. Ripple lawsuit, which has been a focal point within the cryptocurrency industry and the legal community. As Ripple prepares to respond to the SEC’s appeal request, the outcome of this legal battle will likely have significant implications for the regulatory treatment of cryptocurrencies and the broader blockchain space.
Stay tuned for further updates as Ripple’s response and the SEC’s subsequent actions continue to unfold in this high-stakes legal showdown.