Court approves a notice of appearance for an investment banker declarant to protect confidential information in the legal tussle between the SEC and Ripple.
US District Judge Analisa Torres has recently approved Andrew A. Kunsak of Sidley Austin LLP to appear as an investment banker declarant in SEC v. Ripple lawsuit.
“Andrew A. Kunsak of Sidley Austin LLP, 787 Seventh Avenue, New York, New York 10019, a member of this Court in good standing, hereby respectfully enters an appearance for Investment Banker Declarant in the above-captioned action,” a court filing read.
Investment Banker to Protect Confidential Information
The court aims to avoid revealing confidential information regarding previously sealed orders. Notably, the filing refers to an order denying the SEC’s motion to seal the drafts of William Hinman’s infamous speech.
In addition, the filing also cited Ripple’s motion to seal documents related to XRP revenues for institutional and programmatic sales.
It is worth noting that the investment banker declarant aims to protect its stakeholders following the SEC’s request to appeal Judge Torres’ summary judgment.
SEC’s Interlocutory Appeal Request
As reported by The Crypto Basic, the SEC requested permission to file an interlocutory appeal, challenging Judge Torres’ decision on Ripple’s programmatic sales of XRP on digital exchanges and other distributions.
Recall that Judge Torres declared that both the programmatic sales of XRP and other distributions are not securities. According to the judge, retail buyers of XRP did not expect to make profits directly from Ripple’s efforts.
However, the judge found that Ripple’s sales of XRP to institutional investors constitute investment contracts.
As expected, the SEC disagreed with the ruling, stating that Judge Torres’ decision poses “controlling questions of law on which there is substantial ground for differences of opinion.”
Notably, the regulatory agency referenced a recent ruling by Judge Jed Rakoff, the judge overseeing the SEC v. Terra lawsuit.
Rakoff rejected Judge Torres’ reasoning in the Ripple case, noting that the Howey test – a longstanding security test in the US – does not distinguish between buyers the way she did.
Ripple, through its Chief Legal Officer Stuart Alderoty, confirmed that the blockchain company would file a response to the SEC’s request this week.
Alderoty clarified that the SEC is not appealing the non-security status of XRP. He added that the agency is seeking permission to appeal, as it does not have the right to appeal just yet due to pending issues in the case.
Meanwhile, the SEC indicated in its letter that it may appeal the final judgment if the court denies its interlocutory appeal request.