The cryptocurrency legal community is experiencing a division of opinions following a recent court order from Judge Analisa Torres, which denied the U.S. Securities and Exchange Commission’s (SEC) request to file an interlocutory appeal against Ripple.
Mixed Interpretations of the Ruling
While some experts see this decision as a substantial victory for Ripple in its ongoing legal battle with the SEC, others caution against premature celebration.
Judge Torres based her rejection of the SEC’s interlocutory appeal on her prior ruling, which partially favored Ripple. She argued that this ruling did not involve a “controlling question of law,” a prerequisite for approving such an appeal.
Blockchain firm Consensys lawyer Bill Hughes anticipated the denial of the SEC’s appeal, highlighting that it is atypical for interlocutory appeals to be granted at this stage of a trial. However, crypto lawyer Jeremy Hogan expressed confidence that the decision was a “disaster” for the SEC, a viewpoint Hughes disagreed with.
Caution in Crypto Community
General Counsel at Delphi Labs, Gabriel Shapiro, urged caution among crypto advocates, emphasizing that the SEC’s motion for appeal being denied in this instance does not equate to a complete loss for the regulatory agency. He pointed out that the SEC could still pursue an appeal after the trial concludes. Ripple CEO Brad Garlinghouse also weighed in on social media, expressing optimism regarding the recent court order.
Implications and the Path Forward
Scott Chamberlain, an entrepreneurial fellow at the ANU College of Law, underscored the significance of the decision for Ripple. He noted that any future SEC appeal would likely be heard in the Supreme Court, emphasizing the difficulty of the Commission’s position due to the factual record established during the trial.
The trial in question is currently scheduled for April 23, 2024, with any potential SEC appeal to be considered after its conclusion.