David Schwartz says the SEC cannot file an immediate appeal challenging Ripple’s victory because there are still unresolved issues between the parties.
David Schwartz, CTO at Ripple, has recently commented on the heated debate regarding the SEC’s next line of action in the Ripple case.
SEC May Consider 4 Options
As reported yesterday, prominent legal expert James “MetaLawMan” Murphy speculated that the SEC may consider four options as its next move.
Firstly, MetaLawMan said the SEC could request an interlocutory appeal. Secondly, the top legal expert mentioned that the regulatory agency could proceed with the trial regarding the aiding and abetting claim against Ripple execs Brad Garlinghouse and Chris Larsen.
Thirdly, MetaLawMan noted that the SEC could drop its claim against Garlinghouse and Larsen to file an immediate appeal, challenging Judge Torres’ ruling. The legal expert said the securities regulator would not seek permission from Judge Torres and the Second Circuit.
Lastly, MetaLawMan said the SEC could settle with Ripple- a move the expert thinks is highly unlikely.
Ripple CTO Says SEC Can’t File “Immediate Appeal”
As expected, MetaLawMan’s analysis stirred reactions from XRP enthusiasts, with Ripple CTO joining the discussion. In a tweet today, Schwartz said the Securities and Exchange Commission could not file an immediate appeal by dropping its case against Ripple execs.
My understanding was that they don't have option 3 because the summary judgment ruling doesn't fully resolve the dispute between Ripple and the SEC. If nothing else, remedies haven't been argued. An I remembering wrong?
— David "JoelKatz" Schwartz (@JoelKatz) July 26, 2023
According to Schwartz, Judge Torres’ decision did not fully resolve the dispute between the parties, especially the remedies aspect. Schwartz noted that the parties have not argued remedies after the court’s ruling.
With Schwartz ruling out the possibility of the SEC filing an immediate appeal, the regulator could explore any of the three options highlighted by MetaLawMan.
Ripple Lawsuit Far From Over
Although Judge Torres ruled on major parts of the lawsuit, the case is far from over in the Southern District of New York. It bears mentioning that the judge ruled that Ripple’s programmatic XRP sales on digital exchanges, worth over $720M, are not securities. However, she found Ripple’s direct XRP sales to institutional clients worth $728.9M to be securities.
Meanwhile, the judge did not rule on the aiding and abetting charges leveled against Ripple’s execs. Additionally, the court did not decide how much fine Ripple would pay for violating securities law via its XRP sales to institutional investors.
Per the ruling, these issues will be heading to a trial. Notably, the court is expected to communicate a date for a trial in due course.
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