David Schwartz, Ripple’s Chief Technology Officer, recently weighed in on the ongoing discussion about the next steps the Securities and Exchange Commission (SEC) could take in the case against Ripple. He stated that the SEC is not in a position to file an immediate appeal against Ripple’s recent legal victory because there are still outstanding issues that need resolution between both parties.
Some Options That Might be Consider by SEC
According to yesterday’s report, James “MetaLawMan” Murphy, a prominent legal expert, outlined four potential options that the SEC might consider for its next course of action:
- The SEC could request an interlocutory appeal.
- The regulatory agency might proceed with the trial focusing on the aiding and abetting claim against Ripple executives Brad Garlinghouse and Chris Larsen.
- The SEC could abandon its claim against Garlinghouse and Larsen and promptly file an appeal to challenge Judge Torres’ ruling. In this scenario, the SEC would not seek permission from Judge Torres or the Second Circuit.
- Finally, the SEC could choose to settle with Ripple. However, MetaLawMan expressed doubts about the likelihood of this option being pursued.
SEC Can’t File “Immediate Appeal,” Says Ripple CTO
In response to MetaLawMan’s analysis, XRP enthusiasts reacted, and Ripple’s Chief Technology Officer (CTO), David Schwartz, participated in the discussion. In a recent tweet, Schwartz asserted that the Securities and Exchange Commission (SEC) cannot pursue an immediate appeal by dropping its case against Ripple executives.
Schwartz pointed out that Judge Torres’ decision did not completely resolve the dispute between the SEC and Ripple, particularly concerning the remedies involved. He mentioned that the parties have yet to address the remedies issue after the court’s ruling.
Since he dismissed the possibility of the SEC pursuing an immediate appeal by dropping its case against Ripple executives, the regulator may consider any of the three options suggested by MetaLawMan.
Ripple Court Case Not Finally Over
Despite Judge Torres making significant rulings in the lawsuit, the case is still ongoing in the Southern District of New York. It’s worth mentioning that the judge determined that Ripple’s programmatic sales of XRP on digital exchanges, totaling more than $720 million, are not considered securities. However, she concluded that Ripple’s direct sales of XRP to institutional clients, amounting to $728.9 million, do qualify as securities.
At the same time, the judge has not yet made a ruling on the aiding and abetting charges against Ripple’s executives. Additionally, the court has not decided the specific amount of fines that Ripple must pay for violating securities laws through its XRP sales to institutional investors.
According to the ruling, these unresolved issues will proceed to a trial, and the court is expected to announce a trial date in the future.