Renowned law expert James "MetaLawMan" Murphy has provided valuable insights into the SEC v. Ripple case in a recent tweet. In a recent tweet, Murphy outlined four potential paths the SEC might take in response to the ruling, with a major legal showdown on the horizon.
The first option on the SEC's table, according to Murphy, is to file a request for an interlocutory appeal. This move would require permission from both Judge Torres and the Court of Appeals, as no final judgment has been entered yet. Murphy believes the SEC might take this path due to the enormous political pressure on Gary Gensler to reverse the current decision swiftly, as it affects other high-profile cases against crypto giants like Coinbase and Binance.
The second option entails the SEC pursuing a trial on the aiding and abetting claim against Larsen and Garlinghouse before filing a regular appeal. Alternatively, the SEC could opt to drop the claim against Larsen and Garlinghouse immediately and proceed with an appeal without seeking permission.
Lastly, the option of settlement is available, though Murphy is skeptical about this possibility at this moment. He points out that the SEC may be hesitant to settle with Ripple, as doing so would leave the crucial Torres precedent untested on appeal, which is central to the SEC's "regulation-by-enforcement" strategy against the crypto industry.
Bottom line:— MetaLawMan (@MetaLawMan) July 25, 2023
I expect the SEC to file a request for interlocutory appeal within the next 2 weeks.
I believe it would be in the best interests of Ripple & the #XRPCommunity for the appeals process to start now--rather than a year from now.
And I like Ripple's chances on appeal.
Murphy's insights indicate that an interlocutory appeal is the most probable course of action for the SEC. He argues that the appeals process should commence sooner rather than later, as it would be in the best interests of Ripple and XRP holders.