- Ripple’s chief legal officer Stuart Alderoty stated that the SEC has no right to appeal the case just yet.
- The regulator will have to convince the judge that the Ripple ruling addresses a “controlling question of law”.
Ripple’s chief legal officer Stuart Alderoty has recently responded to the appeal intention forwarded by the U.S. Securities and Exchange Commission (SEC) over the Ripple ruling last month. On Wednesday, August 9, the SEC challenged the federal court’s ruling that the “programmatic” sales of XRP don’t constitute securities.
As Torres’s ruling didn’t bring the Ripple case to a close, the SEC requires her approval to initiate an immediate review by the appeals court. The agency will have to convince the judge that the ruling addresses a “controlling question of law,” that there exists “substantial ground for difference of opinion,” and that a prompt appeal could expedite the legal proceedings.
On Wednesday, the SEC submitted an interlocutory appeal to Judge Analisa Torres stating that it “seeks to certify the Court’s holding that Defendants’ ‘Programmatic’ offers and sales to XRP buyers over crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services did not involve the offer or sale of securities under SEC v. W.J. Howey Co., 328 U.S. 293 (1946).”
As per the civil procedure in the United States, an interlocutory appeal takes place when a decision made by a trial court is challenged while other elements of the case are ongoing. Such appeals are permitted only in specific situations, which is why the approval of the appeal remains uncertain.
Ripple CLO – The SEC Has No Right to Appeal Yet
With the SEC filing an appeal to the court ruling on Ripple’s XRP, legal experts have once again come into the picture sharing their views on the matter. Ripple’s chief legal officer Stuart Alderoty stated that the SEC has no right to appeal the case just yet. Responding to a tweet from defense lawyer James K. Fiulan, Alderoty said:
“The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned”.
It’s important to highlight that the SEC’s request for a stay of all ongoing proceedings during the appeal process is not surprising. Defense attorney James K. Filan has already predicted this back in December 2022.
At that time, a purported member of the XRP community questioned whether a clear victory for Ripple would allow the company to conduct operations in the United States even if the SEC chooses to appeal to a higher court. Responding to it, Filan said:
The SEC will ask to stay the judgment pending it’s appeal to the Second Circuit. That means it will ask the court not to enforce the judgment until the appeal is over. That would be an epic battle between the parties and whether the court agrees to that remains to be seen.
Despite the interlocutory appeal by the SEC, there’s not much selling pressure for the XRP price. As of press time, XRP is trading at $0.63 and has a market cap of $33 billion.
