Crypto Twitter Speculates: Will Judge Torres Deny SEC’s Motion in Ripple Lawsuit?

The post Crypto Twitter Speculates: Will Judge Torres Deny SEC’s Motion in Ripple Lawsuit? appeared first on Coinpedia Fintech News

In a tweet, Ashley Prosper, a leading voice in the crypto community, predicted that the motion for interlocutory appeal certification will be denied by Judge Torres in the SEC vs. Ripple lawsuit.

#XRP #XRPCommunity
Tomorrow, the SEC will file its reply to Ripple’s opposition to its motion for certification of interlocutory appeal. Then it’s over to Judge Torres for a decision. It shouldn’t take her long to decide.
My opinion… The motion is Denied.
However, if it is…

— Ashley PROSPER (@AshleyPROSPER1) September 7, 2023

CTO David Schwartz Asserts Regulatory Clarity on XRP

Speaking at the Apex Dev Summit, Ripple’s CTO, David Schwartz, took the opportunity to assert, “Other than Bitcoin, XRP is now the only digital asset with regulatory clarity in the United States.” Schwartz’s declaration invites scrutiny, especially as Ripple continues to battle with the SEC in a high-stakes legal dispute.

“Other than Bitcoin, XRP is now the only digital asset with regulatory clarity in the United States. Yeah, I’d applaud for that one too!”

—@joelkatz during The Future Outlook of the #XRPL on Day 1 of #ApexDevSummit #BuildWithConfidence pic.twitter.com/yScPAm3ZFV

— RippleX (@RippleXDev) September 7, 2023

Ripple Vs the SEC lawsuit: A Legal Overview

Since December 2020, the SEC has been pursuing Ripple Labs with the claim that its XRP transactions over the past eight years constituted investment contracts, and thus should be classified as securities. In a robust defense, Ripple has lodged an opposition to the SEC’s latest bid for an interlocutory appeal, doubling down on its assertion that the court will find its arguments valid.

Unpacking the SEC’s Tactics

The SEC’s filing for an interlocutory appeal speaks volumes about the implications of the Ripple case, not just for the company, but for the broader digital asset market. The commission claims that the ongoing litigation introduces a “controlling question of law,” thereby warranting an appeal. Ripple counters this, challenging the SEC’s request for a procedural pause and accusing it of failing to justify such a move.

The Howey Test Takes Center Stage

Ripple argues that the Howey Test—the standard framework for evaluating whether an asset qualifies as an investment contract—has been employed arbitrarily by the SEC. Ripple is claiming that the SEC is tweaking its “litigation positions” based on desired outcomes, rather than a steadfast commitment to the rule of law.

Ripple vs. SEC: What’s on the Horizon?

According to Prosper’s prediction, the SEC has a 10-day window to file an appeal, but she expects the motion to be denied. She even hinted at a possible out-of-court settlement—a wild card that could have the digital asset community buzzing.

With social media influencers like Prosper and key Ripple executives like Schwartz offering contrasting views, the situation has become a focal point for discussions about what qualifies as a security. The Ripple vs SEC showdown could be a watershed moment for crypto regulation.

Crypto Pulpit