‘SEC Can’t Appeal Right Away’: Fox Business Journalist Dispels Ripple Case Misconception

Fox Business journalist Eleanor Terrett clears a misconception regarding the ongoing Ripple lawsuit, saying the SEC cannot appeal immediately despite dropping charges against Ripple execs.

Eleanor Terrett, a Fox Business journalist, has addressed a major misconception regarding the ongoing legal tussle between the SEC and Ripple.

In an X post today, Terrett clarified that the SEC cannot file an appeal immediately despite dropping its aiding and abetting charges against Ripple execs Brad Garlinghouse and Chris Larsen.

They cannot appeal immediately. They will need to wait until there’s a final judgment which can’t happen until the penalty phase is over. This could take months which means the SEC will not get to appeal until next year. https://t.co/moSIJy3cLh

— Eleanor Terrett (@EleanorTerrett) October 20, 2023

Crypto Banter Host Says SEC Can File Appeal Immediately

She made the remark in response to Ran Neuner, host of Crypto Banter, who rebuked XRP fans for celebrating the recent development in the lawsuit. Neuner explained that with the SEC dropping charges against Ripple execs, the commission could appeal immediately.

“All it means is that now the SEC can appeal the case sooner. Previously, they had to wait until the end of the case, but now that they dropped the case – THEY CAN APPEAL IMMEDIATELY,” he said.

SEC Can Only Appeal After Final Judgment

However, Terrett expressed a contrary opinion, pointing out that the SEC cannot appeal immediately. According to Terrett, the SEC will need to wait until the court has issued its final judgment on the case.

Notably, a final judgment will be given after the remedy stage- the next step in the case. Here, the court will determine the appropriate penalties Ripple will pay for violating securities laws via the sales of over $700 million worth of XRP to institutional clients.

Terrett disclosed that sources familiar with the matter told her there would be more litigation in the penalty stage. While Ripple will be pushing to reduce the penalty, the SEC will want a substantial amount for bragging rights, Terrett said.

Per Terrett, the remedy stage could take several months before the court will issue a decision. Hence, the SEC will be able to file a full appeal by next year, she added.

According to the court order, the parties have until November 9 to propose a briefing schedule for the upcoming remedies.

Court Denies SEC Request for an Interlocutory Appeal

The SEC has already signaled its intention to appeal the court’s July 13 summary judgment. As reported, the court ruled that Ripple’s XRP sales to institutional investors violated securities law, but programmatic sales and other distributions did not.

The SEC expressed dissatisfaction with the decision, emphasizing that the court’s ruling on programmatic sales and other distribution poses controlling questions of law.

As a result, the SEC asked the court to certify an interlocutory appeal, but the request was denied. Judge Analisa Torres ordered the SEC to wait until all pending issues, including the trial and remedies, are resolved before it can appeal.

Now that the SEC has dropped the charges, there will not be any trial. Thus, the SEC has to wait for the remedies stage to be concluded before the appeal.

Settlement Now Likely

Meanwhile, top legal experts, including attorney Jeremy Hogan, believe that a settlement is likely now that the SEC has dropped charges against Ripple execs.

Attorney Hogan said the only legal question left in the case is “how big a check Ripple writes to the SEC.”

Okay, YES, this does make a full settlement much more likely as the only legal question left is how big a check Ripple writes to the SEC.

There, I said it. Are you happy now? 🙂

— Jeremy Hogan (@attorneyjeremy1) October 19, 2023