As Judge Torres approves the SEC’s request to file a motion for interlocutory appeal, seasoned lawyer James Filan explains that the appeal has not been authorized.
US District Judge Analisa Torres has granted the SEC’s request to file a motion for leave to file an interlocutory appeal in its legal tussle with Ripple.
Per a document shared by pro-Ripple lawyer James K. Filan yesterday, the SEC can file the motion today, August 18. Conversely, Ripple has until September 1 to file an opposition to the SEC’s motion.
Additionally, the document stated that the SEC could file its reply to the opposition on or before September 8. This will only be necessary if the regulatory agency has a reply to Ripple’s opposition.
Request Approval Doesn’t Mean Court Has Authorized SEC Appeal
Commenting on the development, Filan said Judge Torres giving SEC the greenlight to file the motion does not imply that the court has authorized the agency’s interlocutory appeal.
He noted that the SEC has only received permission to request an interlocutory appeal.
#XRPCommunity #SECGov v. #Ripple #XRP The Court has set a briefing schedule for the SEC’s request to file a Motion for Leave to File an Interlocutory Appeal. This does not mean an interlocutory appeal has been authorized. It just means the SEC is allowed to request it. pic.twitter.com/vjsUSJELU6
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 17, 2023
Meanwhile, if Judge Torres authorizes the SEC’s interlocutory appeal, the securities regulator would still need permission from the Second Circuit.
If the Second Circuit grants the SEC’s request, then the agency can officially file the interlocutory appeal.
SEC Seeks Permission to Request Interlocutory Appeal
Recall that the SEC requested permission for leave to file an interlocutory appeal. As expected, Ripple opposed the request. In its opposition, the leading blockchain company said:
“[There is] no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”
It further urged the court to deny the request on three grounds, including the fact that the July 13 ruling has no controlling question of law.
Despite the company’s opposition, pro-XRP lawyer John Deaton speculated that the court would grant SEC’s request due to Judge Jed Rakoff’s comment about Ripple’s ruling.
Excellent response. The even stronger argument will be coming next from @bgarlinghouse and @chrislarsensf’s attorneys related to the SEC’s request for a stay. If it wasn’t for the Rakoff ruling, I would lean toward Judge Torres denying the SEC’s request to file a motion for… https://t.co/59mspkDyT3
— John E Deaton (@JohnEDeaton1) August 16, 2023
According to Deaton, Judge Torres allowing the SEC to request an interlocutory appeal would allow her to demonstrate why her July 13 ruling is “sound and based on evidence.”
It is worth noting that the SEC’s interlocutory appeal relates to Judge Torres’ ruling on Ripple’s programmatic sales of XRP and other distributions. As reported, the SEC lost both aspects of the case, as the court ruled that the transactions were not securities.
However, the court found that Ripple’s past sales of XRP to institutional investors are securities. Consequently, the SEC will not appeal Ripple’s institutional sales ruling.
