Crypto Lawyers Expect SEC To File Interlocutory Appeal In Ripple Case
- Crypto lawyers James Murphy and Bill Morgan expect the SEC to file an interlocutory appeal in the lawsuit against Ripple.
- An interlocutory appeal is made in the absence of a final judgment by the court.
- James Murphy believes that the securities regulator may appeal within the next two weeks.
Crypto lawyer James Murphy believes that the Securities and Exchange Commission (SEC) may file an interlocutory appeal in the ongoing lawsuit against Ripple. Murphy’s assessment comes days after the judge overseeing the lawsuit entered a summary judgment motion that handed Ripple a major victory.
James Murphy, who goes by MetaLawMan on Twitter, told his followers earlier today that the SEC could go with three other options, apart from the interlocutory appeal. Such an appeal is entered in the absence of a final order, which has not yet been passed in SEC vs. Ripple.
Murphy stated that the securities regulator would need the permission of Federal Judge Analisa Torres and the 2nd Circuit Court of Appeals to file an interlocutory appeal since it doesn’t have the unilateral right to appeal as of now.
To get permission, the SEC would have to prove three things: Judge Torres’ previous ruling involved a controlling question of law, substantial grounds for difference of opinion in that question, and lastly, material advancement in the litigation through an immediate appeal.
The crypto lawyer believes that the SEC may appeal within the next two weeks, given that the general timeline for requesting an interlocutory appeal is 30 days. Once approved by Judge Torres, the regulator would have an additional ten days to secure the 2nd Circuit Court’s permission.
The second potential path for the SEC would be to go ahead with the trial on the aiding and abetting claim against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse. The third option would be to drop all complaints against the executives and enter an immediate appeal, which would not require any permission. The last option would be to settle the lawsuit, which Murphy believes is highly unlikely.
Fellow crypto lawyer Bill Morgan agreed with James Murphy’s assessment of the SEC’s likelihood of proceeding with an interlocutory appeal. In the event of such an appeal, Morgan suggested that Ripple seek a similar appeal on sales to On Demand Liquidity (ODL) customers.
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