The looming SEC ruling against XRP has taken a toll on the buyers’ appetite as the token declined by 0.88% on Saturday, reversing its 1.05% gain on Friday. The presiding judge in the SEC vs. Ripple Case, Analisa Torres, is yet to deliver her ruling on the interlocutory appeal application.
The SEC stated in the appeal that an interlocutory one-in between a substantive suit- would be more appropriate than a traditional appeal. SEC lawyers noted that these rulings could significantly impact other substantive suits filed against crypto businesses such as Coinbase and Binance.
The SEC vs. XRP interlocutory appeal
A ruling is presented one week after its application. It is required to resolve disputes that require urgent attendance and cannot wait for the determination of the substantive suit as irreparable harm is likely to have occurred before then.
A substantive suit may take months or years to determine depending on the case’s complexity, which Torres is unlikely to expedite even after applying the Howey test in deciding what amounts to a security in the original ruling.
In the original ruling, the SEC failed to prove on the balance of probabilities that it had a viable case against the XRP token. Thus, the motion was dismissed. The Second Circuit Court of Appeals will oversee the proceedings if leave is granted. The court is required to resolve important questions of law.
The defendant’s lawyers criticized the move by the SEC in filing for an interlocutory appeal for the resolution of questions of law that are likely to affect all other digital assets. They asserted that they would welcome an appeal once the suit was over upon receiving the final judgment.
XRP’s price could sink further coming week
The impending XRP vs. SEC ruling is causing jitters in the market that have already caused a change in the token’s price. This is the more likely trajectory in the next week as investors await the Torres decision. The interlocutory appeal will have a significant impact on both cases between the SEC, Ripple, and Coinbase.
Coinbase had filed a motion against the SEC, asking the court to dismiss all charges against the exchange. Some of the charges included operating an unregistered coin offering and as an unregulated securities exchange.
The application is yet to be determined by Judge Katherine P. Faila. It would be a great relief if the learned judge decides to dismiss all charges against Coinbase before Judge Torres on the Ripple case. Judge Torres would have a significant precedent to follow in denying the SEC the interlocutory appeal prayers.
Judge S Rakoff criticized Judge Torres in the SEC vs. Terraform Case, where he stated that the learned judge had erred in law by declaring that XRP was not a security according to the Howey Test. He asserted that there is no difference between institutional sales and stocks in the classification of a security.
These upcoming rulings are spreading uncertainty in the market as they will have significant implications on XRP and the market at large. According to John E. Deaton, Crypto-Law US founder and lawyer, a favorable ruling in the Coinbase case may prompt the SEC to settle with Ripple. Deaton was joined in the SEC vs. Ripple case as an Amicus Curiae-, a friend of the court.
As Ripple (XRP) navigates through its lawsuit with the SEC now awaiting a ruling on an interlocutory appeal, the market is suffering from uncertainty, which has already begun taking a toll on the token’s price action. The token registered a decline on Saturday, partially revising Friday’s gain.
The SEC motion, termed a strategic move to stop the effects of the first ruling on its enforcement program, is one of the regulator’s approaches to protect the crypto market’s investors.
