Ripple XRP Lawyer Analyses Options Regarding SEC’s Request for Interlocutory Appeal

Popular lawyer and crypto enthusiast James Murphy weighs in on the heated debate between the SEC and Ripple in the XRP lawsuit. James Murphy, popularly called MetaLawMan, analyzed Ripple's possible actions when responding to SEC's request for interlocutory appeal.

SEC/Ripple, Interlocutory Appeal analysis

This post will address what I see as Ripple's options in responding to the SEC's request to Judge Torres for certification of an interlocutory appeal.

Option 1: Oppose the motion to certify the appeal.

Ripple could say that the... https://t.co/cMVhARiR79

- MetaLawMan (@MetaLawMan) August 10, 2023

While many anticipate Ripple's response, the lawyer said the blockchain firm could choose a slower route, which is opposing the SEC's appeal request. He outlined various reasons why the fintech firm would opt for this option, including alternative routes for the firm if it accepts the appeal.

Here's How The blockchain Firm May Respond to SEC's Appeal Request

Notably, the SEC's August 9 Filing stated that Ripple has until August 16 to respond to the appeal request. However, Ripple's chief legal officer Stuart Alderoty said the firm would file a response by next week.

Meanwhile, in his analysis, MetaLawMan said Ripple may oppose the SEC's request for an interlocutory appeal. In that case, the legal expert said the firm behind XRP could agree with Judge Torres' decision while arguing that an interlocutory appeal is a waste of time.

Also, he noted that Ripple may support its argument by citing the possibility of another appeal to come after Brad Garlinghouse and Christian Larsen's trial.

Secondly, MetaLawman noted that Ripple's other option is to agree with the SEC that an interlocutory appeal is appropriate. While he thinks Ripple may not choose the second option, the lawyer said he wouldn't be shocked if it happened.

According to him, the question is when the appeal process will begin-now, a year or more later, or after Garlinghouse and Larsen's trial?

In addition, the lawyer added a clause to the second option. If Ripple agrees that an interlocutory appeal is appropriate, it could argue for the court to certify the SEC's win on institutional sales for cross-appeal.

However, there will be no need for a penalty phase or further trial on aiding & abetting if the 2nd Circuit reverses the SEC's win on the institutional XRP sales.

Reasons Why Ripple Would Likely Oppose SEC's Appeal Request

In summary, MetaLawman believes Ripple will go for option one, opposing the SEC's request for an interlocutory option. He cited three reasons to support his theory.

Firstly, Ripple won't accept the substantial grounds for difference of opinion" on the judge's ruling. That's because Ripple believes that Judge Torres' ruling is based on a fair application of the Howey test.

Notably, Ripple agrees that the secondary market XRP sales ruling is correct and consistent with several precedents.

Secondly, the pro-XRP lawyer reasoned that Ripple would oppose the appeal since, though highly unlikely, Congress may sign a crypto law.

Thirdly, MetaLawMan reasoned that Ripple may oppose the appeal since chances are high that the 2025 administration may have a different view and approach to crypto.

Furthermore, the expert noted that the interlocutory appeal has little chance of success. Nonetheless, he said Judge Jed Rakoff's remarks on the Ripple ruling may cause Torres to take an uncommon approach.

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