In an interesting turn in the Ripple lawsuit, the SEC has filed its reply memorandum in further support of its motion to certify an interlocutory appeal.
It should be recalled that in the past week, Ripple and its defendants filed an opposition to the SEC's earlier motion to certify an interlocutory appeal.
James K. Filan, former defense counsel and Ripple enthusiast, calls attention to the latest development in the SEC lawsuit while highlighting what he deems a "laughable" argument in the SEC filing.
Filan stated that the SEC's argument that Judge Torres should stay the proceedings because it is suddenly concerned about conserving judicial resources was laughable.
Neil Hartner, a senior staff software engineer at Ripple, posted a screenshot of a part of the SEC filing, specifically a statement that reads: "The SEC as plaintiff has an institutional interest in the efficient resolution of this case. Defendants do not. They seek to prolong this litigation, as they have already promised to do."
XRP holders' attorney John Deaton, who is also the founder of CryptoLaw, reacts to the SEC's claim, which he finds laughable. He criticizes the SEC's legal position, pointing out that a federal judge once dubbed the SEC hypocrites who lacked faithful allegiance to the law.
Deaton goes on to say that the argument was laughable because a stay, by definition and operation, automatically prolongs the entire litigation, laying out the implication of the SEC's request for a stay of every proceeding, including the trial of Ripple executives Chris Larsen and Brad Garlinghouse.
Because a trial has yet to be held, an interlocutory appeal may not resolve the case, according to Deaton, and may even add to the total process, requiring more judicial resources. Deaton stated that if an early appeal is granted, it might take 1.5–2 years for the 2nd Circuit to decide.
Ripple General Counsel Stuart Alderoty slams the SEC's new filing, referring to it as hypocritical. Fred Rispoli, an attorney and participant in the Ripple lawsuit, predicts an outcome in which the SEC's request is denied.