- Ripple’s CTO, David Schwartz, believes that the regulatory body is prolonging the lawsuit by appealing for an interlocutory appeal.
- Ripple stands to gain from the process regardless of whether the summary judgment is overturned.
- The lawsuit, which was expected to conclude by mid-2024, could be postponed to 2025 if it goes to appeal.
As the cryptocurrency industry grows, investors are becoming more familiar with the intricacies of the US legal system. The ongoing lawsuit between Ripple Labs and the United States Securities and Exchange Commission (SEC) is a case in point.
What’s the Latest in the Ripple Lawsuit?
David Schwartz, Ripple Labs’ Chief Technology Officer, recently provided an update on the SEC’s appeal application. According to Schwartz, the SEC is appealing based on the premise that the legal case has not yet reached a conclusion. This approach allows the parties involved to appeal after the case has been resolved, a strategy aimed at enhancing the efficiency of the legal process and preventing constant interruptions due to multiple appeals on minor decisions.
Following Judge Analisa Torres’ ruling on July 13 that XRP was not a security when sold on digital asset exchanges, the SEC filed an appeal. Despite the decision being in Ripple’s favor, the SEC’s move focuses on an unexpected development within the primary process. Schwartz emphasized the importance of consolidating appeal applications to improve matters, as separate appeals would further prolong the legal process.
Who Will Win the Ripple Lawsuit?
Ripple believes that even if the SEC goes to appeal, the main case should continue during the appeal process. This aligns with the idea of allowing the trial to proceed and carefully considering appeals once everything else is completed. Schwartz provided further information due to rumors in the Bitcoin community about the SEC wanting to appeal Torres’ decision to higher courts.
The outcome of the legal dispute between Ripple Labs and the SEC could be influenced by the court’s decision on whether to accept the appeal request. If the SEC, which has been granted permission to file an appeal, cannot present convincing arguments, it will not be able to appeal. Under normal circumstances, jury trials are expected to be completed by the beginning of the second quarter of next year, and the case should then be concluded. If the SEC can get the Judge’s support on the appeal issue, we may have to wait until 2025 for the case to be resolved.
Conclusion
Regardless of who wins the lawsuit, Ripple has already achieved a significant victory. However, the absence of a settlement suggests that the SEC is confident of winning the case. Regardless of who wins, as long as the conditions in the summary judgment remain constant, Ripple could continue its journey by paying a reasonable compensation even if it loses the case. However, in this scenario, the SEC would do its best as its hand against other altcoins would be significantly weakened.
