Judge Torres' denial of SEC's appeal caused a stir in the crypto industry.
A recent order from Judge Analisa Torres denying the SEC's plan for an interlocutory appeal against Ripple has left legal experts split.
An interlocutory appeal refers to a request made during an ongoing trial, in this case, the SEC's lawsuit against Ripple, its CEO Brad Garlinghouse, and executive chairman Christian Larsen.
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Judge Torres based her denial on the fact that the appeal did not involve a "controlling question of law," a crucial requirement for an interlocutory appeal to proceed.
Crypto lawyer Jeremy Hogan considers this rejection a "disaster" for the SEC. On the flip side, Bill Hughes, a legal expert at blockchain firm ConsenSys, indicated that the dismissal of the SEC's appeal was expected.
Delphi Labs General Counsel Gabriel Shapiro cautioned the crypto community not to overinterpret the ruling.
It doesn’t mean the SEC "lost its appeal"... it means that if the SEC wants to appeal it has to appeal everything at once after the trial.
Another legal expert, Scott Chamberlain, argued that the denial could be a more crucial blow to the SEC than others suggest, noting:
Yes, the SEC can appeal later, but it is stuck with <a> shitty factual record that makes successful appeal much more difficult.
He added that any future appeals by the SEC would most likely go straight to the Supreme Court, as no significant legal questions remain in the case.
Ripple's CEO Brad Garlinghouse didn't hold back his enthusiasm about the ruling, sharing his views through social media. According to the latest court order, the trial is slated to commence on April 23rd, 2024, and the SEC will only have the option to file an appeal after the trial concludes.
The recent denial of the SEC's interlocutory appeal in the Ripple case has received a mixed reception from legal experts. While some see this as a substantial hurdle for the SEC, others believe the regulatory body still has options down the line. The decision underscores the complexities of the case and how different parties interpret its implications, making the trial one of the most closely watched battles in the crypto legal sphere.
