Will The SEC Appeal A Stay On Judgement If Ripple Wins The Lawsuit?
Sohrab Khawas22 Dec 20222 min read
In their ongoing case, Ripple and the SEC have jointly moved for an extension of time until January 13, 2023, in order to file the Daubert motions and related exhibits on the public docket with redactions in accordance with the court’s Dec. 19, 2022, sealing judgement.
This ruling helped Ripple secure a minor win against the SEC! In the recent ruling, the court allowed its request to redact the documents produced in connection with the Daubert motions. This strives to safeguard both the legitimate privacy concerns of third parties and the sensitive business interests of Ripple.
With each new development in the lawsuit, it appears to be nearing its resolution. However, if Ripple prevails in the legal dispute, what would actually happen? Let us explore.
What If Ripple Wins The Lawsuit?
On Wednesday, an XRP enthusiast on Twitter with the username @scaruso123 inquired as to what would happen in the interim if Ripple wins the lawsuit and the SEC appeals to the appellate court.
Following that, he asked whether Ripple had the authorization to operate in the United States until the final decision was made.
Former federal prosecutor James K. Filan responded to this query. Filan explained that the SEC will urge the court to stay the judgement of its Second Circuit appeal. This means that it will ask the court not to enforce the judgement until the appeal is resolved. Filan emphasises that it would be an epic battle between the parties, and whether the court agrees to this plea remains to be seen.
Would Judge Torres Grant SEC’s Request?
Jeremy Hogan, a partner at Hogan & Hogan, reacted to Filan’s speculation that the SEC will persuade Judge Torres not to immediately enforce the judgement.
Attorney Hogan believes Judge Torres will deny the Securities and Exchange Commission’s request for a stay of the verdict. If the Judge decides that Ripple did not violate Section 5 of the Securities Act of 1933, there will be no need to stay the decision.
When is a Ruling Expected?
The majority of legal experts who have shared updates on the litigation predict Judge Analisa Torres will rule on the matter on or before March 31, 2023. Even James K. Filan agrees with this statement.
Ripple CEO Brad Garlinghouse told the audience at the DC Fintech Week conference that the SEC lawsuit against his company would be resolved in the first half of 2023. It is not ruled out that it could take longer, though.
