The SEC filed an interlocutory appeal to the court after Judge Analisa Torres ruled that programmatic sales of XRP did not qualify as securities. This means that the U.S. Securities and Exchange Commission (SEC) disagrees with the ruling, and although the interlocutory appeal has been approved by the court, John Deaton, a lawyer supporting XRP, called the move ridiculous in dismissing the SEC’s appeal.
Pro-XRP lawyer calls interlocutory appeal application ironic
In a post titled “The Irony of Interlocutory Appeals,” Deaton shared his thoughts on the SEC’s interlocutory appeals. This article published on the Crypto Act website on Thursday, September 28, explains how the appeal documents ultimately favored Ripple.
Lawyers supporting XRP explained that Judge Torres’s granting of the appeal motion was expected, on the grounds that such an appeal would give the judge an opportunity to clarify her reasons for ruling in favor of Ripple.
According to Deaton, Judge Torres will be able to respond to a statement made by Judge Rakoff, the judge overseeing the SEC v. Terraforms Labs lawsuit, regarding his ruling. “Judge Torres had the authority to file a formal motion for interlocutory appeal, now distinguishing her actual ruling in Ripple from Judge Rakoff’s purported ruling,” Deaton explained.
Furthermore, the attorney supporting XRP stated that “it was the SEC that classified the different sales, not Judge Torres.” This means that Judge Torres was actually ruling based on what the SEC presented to her and was not part of the case Content.
Ripple vs. SEC: The impact of each side’s victory
Deaton’s post also talked about what would happen if Ripple or the SEC prevailed in the interlocutory filing. On the one hand, an SEC victory means the case will again go before Judge Torres, who will have to analyze the facts of the case using the Howey test. However, Deaton is convinced the regulator will not win the appeal.
“Even if the Second Circuit disagrees with Judge Torres’ analysis of Howey’s third aspect, the SEC would not prevail on summary judgment,” Deaton explained. “Instead, Judge Torres will once again apply the investment prongs and common enterprise prongs of the Howey test, further delaying the case.”
On the other hand, if Ripple wins, the case will still go back to Judge Torres, but this time, it will go to trial. Depending on the outcome, Deaton predicts there will be more appeals on all resolved issues. Ultimately, it just leads to a drawn-out battle.
As Deaton mentioned in the post, even if the case is granted an early appeal, the legal battle will drag on for another 1.5 to 2 years. This may indicate that the Ripple v. SEC case may continue into 2025.
XRP reclaims $0.51 | Source: XRPUSD on Tradingview.com
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