The SEC faces a tough battle in disputing Ripple XRP’s non-security status.
Judge Torres’ history of firm decisions makes a successful SEC challenge unlikely.
The appeals court’s decision will be based solely on the existing trial record, limiting the SEC’s options for appeal.
The Securities and Exchange Commission (SEC) is gearing up for a challenging battle as it attempts to dispute the ruling that Ripple XRP is not a security. To succeed in this appeal, they must meet strict conditions, making the task ahead seem arduous.
It seems the odds are stacked against them. Let’s dive into the details!
Where is the Evidence?
The appeals court, in this case, will base its judgment solely on the evidence presented during the original trial, without considering new evidence or witnesses. Only if the original findings appear to be “clearly erroneous” can the appeals court overturn the decision. This rigid requirement sets a high bar for the SEC to clear in their pursuit of an overturn.
SEC’s Chances are Slim: A Look Back
Considering past cases, the odds of the SEC winning this appeal appear slim. Judge Torres, renowned for her firm decisions, boasts a record of never having her summary judgment orders reversed on appeal. This legacy casts doubt on the possibility of the SEC successfully challenging her rulings. Appeals from district courts and federal administrative agencies are addressed within their respective circuits, and decisions by the courts of appeals are usually considered final and binding within those circuits.
Related: Ripple’s Chief Legal Officer Shrugs off Potential SEC Appeal on Landmark Ruling!
Understanding the Appellate Courts
Appellate courts preside over cases originating in state courts if they involve allegations of constitutional rights violations. This expansive jurisdiction applies irrespective of whether the alleged infringements involve federal, state, or local governments. Hotly contested issues like freedom of speech, religion, the right to bear arms, and equal protection under the law fall under the purview of federal appellate courts.
In the case of Ripple, if the SEC decides to challenge the ruling, they must do so based on the existing trial record, which presents a significant hurdle. The appeals court’s decision relies solely on this record from the trial court or agency, leaving little room for the SEC to introduce new evidence or arguments.
Read More: SEC’s Ripple Appeal Unlikely to Affect XRP Holders, Says Attorney John Deaton
The stringent conditions for a successful appeal, Judge Torres’ formidable reputation, and the limited basis for challenging the ruling all contribute to the formidable challenge ahead. Only time will reveal the outcome of this high-stakes legal confrontation, but one thing is certain – the road to victory for the SEC will be far from smooth.
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