In the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the recent order partly granting and partly denying Judge Torres’ motion for summary judgment has left many XRP investors eagerly awaiting the next steps. To shed some light on the situation, prominent lawyer Jeremy Hogan has share his thoughts on the matter, offering valuable insight into the potential appeal process with timelines and its implications for both parties involved.
Ripple against. SEC: the next possible deadline
Hogan, a seasoned attorney with experience in appeals, cautions that appeals are usually pursued after a case is fully concluded. “Once final judgment is rendered, either party has 60 days to appeal,” said Hogan, who pointed out that the Ripple case was not yet finalized, any potential appeal to this stadium would be considered an “interlocutory appeal”.
“From what I can see in the Rules, you have 10 days to serve an interlocutory appeal,” Hogan says. Since summary judgment was entered on July 13, an appeal from the SEC or Ripple Labs should be filed no later than July 23 (or July 24 if the deadline does not begin until the next day). This means that next Monday at the latest, it will be made public if one of the parties files an appeal.
But an interlocutory appeal is rarely granted and usually requires compelling reasons, such as the disclosure of material information that could affect the case. However, Hogan points out that Judge Torres did not certify her decision for immediate review, indicating that an interlocutory appeal may not be granted in this scenario. This suggests that the SEC and Ripple should wait for a final judgment before pursuing an appeal. Hogan thinks both sides could ultimately choose not to appeal for a variety of reasons.
According to the attorney, the SEC might be hesitant to appeal because even if successful, it could potentially jeopardize his entire case. Winning the appeal would recant some unfavorable aspects of the case at the trial level. However, if the SEC loses on appeal, it could set a precedent that all courts in the 2nd DCA (Second District Court of Appeals) should follow, magnifying the impact of their loss.
On the other hand, Hogan believes that Ripple can choose not to appeal if it can afford to pay the fine and if the effect of the decision on its business, especially the aspect regarding the liquidity function on-demand (ODL), is manageable. These factors, combined with the fact that Ripple obtained a favorable outcome in the decision, could deter them from appealing.
When discussing the potential difficulties in winning an appeal, Hogan points out that Judge Torres is the one who meticulously reviewed the entire case. This makes the appeal process inherently difficult for either party, further reducing the likelihood of an appeal.
Regarding the SEC’s challenge to appeal the aspect of secondary market sales, which presents a problematic area for the regulator, Hogan admits that he has yet to solidify his thoughts on the question.
XRP price took a breather after the stunning rally following Ripple’s summary judgment. After being rejected at the 38.2% Fibonacci retracement level at $0.93, 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 continue. The final verdict in Ripple v. SEC and potential litigation will certainly continue to have a significant impact on the price.
Featured image from Outlook India, chart from TradingView.com