In the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the recent order granting in part and denying in part the motion for Summary Judgment by Judge Torres has left many XRP investors eagerly awaiting the next steps. To shed some light on the situation, prominent attorney Jeremy Hogan has shared his thoughts on the matter, offering valuable insights into the potential appeal process with deadlines and its implications for both parties involved.
Ripple Vs. SEC: The Next Possible Deadline
Hogan, a seasoned attorney with experience in appeals, cautions that appeals are typically pursued after a case is completely finished. “After the final judgment is entered, either party has 60 days to appeal,” says Hogan who emphasized that the Ripple case is not yet finalized, any potential appeal at this stage would be considered an “interlocutory appeal.”
“As far as I can see in the Rules, you have 10 days to notice an interlocutory appeal”, states Hogan. Since the Summary Judgment was issued on July 13, an appeal by the SEC or Ripple Labs would have to be filed by July 23 at the latest (or by July 24 if the deadline does not start until the following day). This means that next Monday at the latest it will become public whether one of the parties files an appeal.
But an interlocutory appeal is rarely granted and generally requires compelling reasons, such as the release of significant information that could impact the case. However, Hogan points out that Judge Torres did not certify her ruling for immediate review, indicating that an interlocutory appeal might not be granted in this scenario. This suggests that the SEC and Ripple would need to wait for a final judgment before pursuing an appeal. Hogan believes that both parties might ultimately choose not to appeal for various reasons.
According to the lawyer, the SEC might hesitate to appeal because, even if successful, it could potentially jeopardize their overall case. Winning the appeal would retract some unfavorable aspects of the trial-level case. However, if the SEC were to lose at the appellate level, it could set a precedent that all courts in the 2nd DCA (Second District Court of Appeals) would have to follow, amplifying the impact of their loss.
On the other hand, Hogan believes that Ripple may opt not to appeal if it can afford to pay the fine and if the ruling’s effect on its business, particularly the aspect concerning the On-Demand Liquidity (ODL) feature, is manageable. These factors, combined with the fact that Ripple secured a favorable outcome in the ruling, might dissuade them from pursuing an appeal.
When considering the potential difficulties in winning an appeal, Hogan emphasizes that Judge Torres is the one who has meticulously reviewed the entire case record. This makes the appellate process inherently challenging for either party, further reducing the likelihood of an appeal.
Regarding the SEC’s challenge in appealing the secondary market sales aspect, which presents a problematic area for the regulatory body, Hogan admits that he hasn’t solidified his thoughts on the matter yet.
The XRP price has taken a breather after the stunning rally following the Ripple summary judgment. After being rejected at the 38.2% Fibonacci retracement level at $0.93, the XRP price is currently trading at $0.7481. After a possible retest of the 23.6% Fibonacci retracement level at $0.68, the impulsive move may see a continuation. The final verdict in the Ripple v. SEC case and possible appeals will certainly continue to have a strong impact on the price.
Featured image from Outlook India, chart from TradingView.com