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FameEX Hot Topics | Legal Expert Presents 4 Possible Paths for SEC in Ripple's XRP Case

2023-07-27 16:10:26

In the aftermath of the ruling on the Ripple case concerning XRP, a lawyer named James Murphy has outlined four possible courses of action that the U.S. Securities and Exchange Commission (SEC) could pursue. Notably, the SEC has expressed its intention to appeal the court's decision. The first option entails the SEC filing a "request for interlocutory appeal," though this would require permission from both Judge Analisa Torres and the 2nd Circuit Court of Appeals. To obtain this permission, the SEC must demonstrate that the ruling involves a critical question of law, that there is substantial disagreement on this question, and that an immediate appeal would significantly advance the litigation. While there is no fixed deadline for the initial appeal request, Murphy suggests that it should be done promptly, typically within 30 days. If Judge Torres grants permission, the SEC would then have an additional 10 days to request the 2nd Circuit's approval.

Murphy goes on to describe the other three options. The second approach involves the SEC proceeding with a trial on the aiding and abetting claim against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, and then filing a standard appeal after the trial. The third option entails the securities regulator dropping the claims against Garlinghouse and Larsen immediately and filing an immediate appeal, which does not require permission. Finally, the fourth option for the SEC is to reach a settlement.

The lawyer believes that the SEC is likely to pursue the first option due to significant political pressure on SEC Chairman Gary Gensler to overturn the Torres decision swiftly. Furthermore, the decision's impact on the SEC's cases against various cryptocurrency exchanges, such as Coinbase, Binance, and Bittrex, adds to the urgency for a quick resolution. The reinstatement of XRP listings by crypto exchanges worldwide reflects poorly on the SEC, leading to heightened criticism from figures like Congressman Ritchie Torres. The settlement option is considered unlikely as it would leave the precedent set by Judge Torres untested on appeal, undermining the SEC's broader "regulation-by-enforcement" approach toward the crypto industry.

Murphy concludes that the SEC is likely to file a request for an interlocutory appeal within the next two weeks, advocating for Ripple and the XRP community's best interests to initiate the appeals process promptly rather than waiting a year. He expresses confidence in Ripple's chances on appeal, and the outcome could significantly impact the future trajectory of the case and its implications for the broader cryptocurrency market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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