In a strategic move ahead of an expected interlocutory appeal by the U.S. Securities and Exchange Commission (SEC), Ripple, the prominent cryptocurrency entity, has filed a timely response. This step follows a recent partial win for Ripple after a summary judgment granted on July 13, 2023.
The legal representation for Ripple has dispatched a letter to Judge Analisa Torres, who presides over the case, to contest the SEC’s forthcoming motion seeking permission to submit an interlocutory appeal concerning the court’s decision to grant summary judgment in favor of the cryptocurrency firm.
The Purpose of an Interlocutory Appeal
An interlocutory appeal is a legal maneuver to challenge a trial court’s ruling while other aspects of the case are still ongoing. Essentially, it aims to challenge a specific ruling before the court reaches a final verdict.
Notable crypto lawyer James Murphy, formerly associated with Twitter, had predicted the possibility of an interlocutory appeal from the SEC. Murphy highlighted the mounting political pressure on SEC Chair Gary Gensler and the potential implications of the summary judgment on the SEC’s ongoing high-profile legal confrontations with major crypto players like Binance and Coinbase. These factors could have influenced the SEC’s decision to explore this course of action.
However, proceeding with an interlocutory appeal requires authorization from both Judge Torres and the United States Court of Appeals for the Second Circuit. The SEC must establish three critical aspects to gain approval for such an appeal: firstly, the prior court ruling should involve a pivotal legal question; secondly, there must be substantial divergence of opinion on this matter; lastly, an immediate appeal should significantly expedite the resolution of the legal proceedings.
Ripple’s Strong Opposition
Ripple, led by Chief Executive Brad Garlinghouse and co-founder Chris Larsen, has staunchly contested the projected appeal on the basis that the prerequisites mentioned above would not be met in the SEC’s intended interlocutory appeal.
As the legal battle rages on, the outcomes of this exchange between Ripple and the SEC hold implications not only for the parties involved but also for the broader cryptocurrency and regulatory landscape.
