The ongoing legal battle between Ripple and the SEC could potentially reach the US Supreme Court
Key Points
- Ripple plans to challenge unfavorable rulings and potentially take the case to the US Supreme Court.
- Ripple’s legal strategy seems focused on long-term appeals, with a possibility of negotiations with the SEC.
- The Ripple lawsuit could lead to the creation of a new securities test, the “Ripple test,” alongside the existing Howey test.
- The delay in judgment from Judge Torres may be due to the potential for the case to reach the Supreme Court.
The ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) has caught the attention of attorney and CryptoLaw founder, John Deaton. In a recent CryptoLaw broadcast, Deaton provided interesting insights into the case, suggesting that it could eventually reach the US Supreme Court.
Ripple to Challenge Unfavorable Rulings
Deaton highlighted that if Judge Analisa Torres were to rule in favor of the SEC by granting a summary judgment, Ripple would not passively accept it. According to Deaton, Ripple would appeal the decision, and the case could potentially end up in the US Supreme Court. He stated, “Let’s face it, this case will go to the US Supreme Court most likely if it goes up on appeal.”
ripple is going to the supreme court.
— julius rose (@mrjuliusrose) June 29, 2023
Ripple’s Long-term Legal Strategy
Deaton pointed out an intriguing aspect of Ripple’s legal approach. He noted that Ripple’s summary judgment brief seemed to be designed with the Appellate Courts in mind, indicating their focus on a long-term legal strategy. Additionally, Deaton mentioned the possibility of the SEC engaging in negotiations with Ripple to dissuade them from pursuing an appeal.
A New Ripple Test on the Horizon
Deaton suggested that the Ripple lawsuit could lead to the development of a new securities test called the “Ripple test.” This test would complement the existing Howey test, which currently determines the classification of a transaction as an investment contract.
While the SEC could potentially file a “notice of appeal” once Judge Torres delivers her summary judgment decision, Deaton speculated that they might opt for negotiations with Ripple to avoid the appeals process altogether.
Why the Delay in Judgment?
Deaton proposed that one reason for Judge Torres’s delay in issuing a ruling could be the potential for the case to reach the Supreme Court. He believes that she is taking her time to ensure a comprehensive and robust ruling, considering that her decision would undergo thorough examination by top US justices and the Second Circuit.
Ripple’s General Counsel, Stuart Alderoty, echoed Deaton’s insights. Alderoty confirmed that if Judge Torres grants a summary judgment in favor of the SEC, Ripple will promptly file an appeal. He expressed unwavering confidence in Ripple’s ability to succeed against the SEC at the Supreme Court, emphasizing the court’s tendency to protect against the expansion of an administrative state.
The outcome of the Ripple vs SEC lawsuit remains uncertain, but with the possibility of the case eventually reaching the US Supreme Court, the crypto community continues to closely watch the developments unfold.
