Following the two-sided episode of Ripple versus the US SEC, the fintech world finds itself enmeshed in discussions about the potential for an appeal in the lawsuit. These deliberations sparked off following a speculative tweet by CryptoLaw founder, John Deaton, asserting that it was unlikely an appeal from the SEC would receive approval from US District Judge Torres.
This commentary stirred up quite the back-and-forth, primarily between Deaton, Attorney Bill Morgan, and ex-SEC regional director, Marc Fagel. While Deaton maintained that an appeal from the SEC would be faced with Judge Torres’ refusal, he clarified that either parties involved in the lawsuit had the right to request for an appeal before verdict delivery.
Taking the discussion further, Deaton shed light on how the appeal process might pan out. Both Ripple and the SEC can put forth their appeal requests for Judge Torres’ approval before approaching the secondary circuit to accept it, however he doubts the SEC would get the green light. The legal expert articulated his scepticism by highlighting the judge’s allegiance to the Howey factors in deliberation, as revealed in her application of the Howey test during every allege securities law violation by Ripple based on SEC’s request for summary judgment.
Deaton expressed his belief in the strength of Judge Torres’ ruling as solid and well-supported by an undisputed 76-year old Supreme Court test. This conviction led him to the conclusion that while both parties had the right to present written applications of persuasion, he saw no point in attempting such actions.
Diving into further speculation, Deaton voiced his thoughts on Ripple’s potential reaction to a prospective appeal by the SEC. Despite the general acceptance that Ripple might likely counter any appeal motion against their victory, Deaton expressed a surprising twist – he anticipated that Ripple might not react positively towards an interlocutory cross-appeal on the ODL sales.
Endorsing an opposing view to Deaton’s scepticism, Fagel and Morgan influence arguments by supporting the likelihood of both parties appealing the ruling. They argue that barring a settlement, which in itself feels highly unlikely to Fagel, the SEC would not hesitate to appeal the decision. The ruling outcome, according to Fagel, stands to significantly impact the SEC’s subsequent cases against other crypto exchanges. This presumption hints at the inclusive fallouts from what seems a seemingly isolated incident – the Ripple versus SEC lawsuit.
Source: Cryptonews
