In the ongoing legal showdown between Ripple and the U.S. Securities and Exchange Commission (SEC), the crypto community is eagerly awaiting the SEC’s next step. The recent partial legal victory for Ripple has raised questions about what actions the SEC might take in response. Pro-crypto lawyer James Murphy has outlined four potential options that the SEC could consider.

The first option on the table is for the SEC to file a request for interlocutory appeal. Since a final judgment has not been entered, the SEC would need permission from both Judge Torres and the 2nd Circuit Court of Appeals to proceed with this type of appeal. To secure permission, the SEC must demonstrate that the ruling involves a controlling question of law, substantial grounds for a difference of opinion exist, and an immediate appeal could materially advance the litigation.

Another option for the SEC is to proceed with a trial on the aiding and abetting claim against Ripple CEO Brad Garlinghouse and Chris Larsen, followed by a regular appeal. This could provide an alternative route to challenge Ripple’s partial legal victory.

The third option entails the SEC dropping the claims against Larsen and Garlinghouse and immediately filing an appeal, thereby eliminating the need for permission. Additionally, a settlement between Ripple and the SEC remains a possibility, although Murphy deems it unlikely due to the SEC’s aim to challenge Judge Torres’ precedent through an appeal.

Murphy suggests that the SEC will most likely pursue the first option of filing a request for interlocutory appeal. However, he notes that obtaining permission for such an appeal can be time-consuming and has the potential to impact the overall timeline of the case. The specific circumstances of the case and the court’s availability to consider the request may influence the timeline as well.

Political pressure plays a significant role in this legal battle. Gary Gensler, the SEC Chair, faces mounting pressure to reverse Judge Torres’ decision promptly, especially considering the decision’s implications for the SEC’s cases against other cryptocurrency exchanges such as Coinbase, Binance, and Bittrex. The relisting of XRP by crypto exchanges worldwide has placed the SEC in a difficult position, leading to increased criticism of Gensler by progressive Congressman Ritchie Torres and others.

Despite the likelihood of political pressure, Murphy believes that a settlement is improbable, as it would leave Judge Torres’ precedent untested on appeal. He asserts that the SEC’s “regulation-by-enforcement” approach towards the crypto industry rests on overturning the ruling. Therefore, he anticipates the SEC to request an interlocutory appeal within the next two weeks.

Murphy maintains that it is in the best interest of Ripple and the XRP community for the appeals process to commence promptly, rather than an entire year from now. He is optimistic about Ripple’s chances on appeal.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.