This move holds significant implications for the case as it introduces a new perspective to the legal proceedings.
In a recent development, Judge Analisa Torres has granted permission for an investment banker declarant to make an appearance in the legal proceedings involving Ripple Labs Inc and the US Securities and Exchange Commission.
The Role of the Investment Banker Declarant
An investment banker declarant is an individual who provides expert testimony and insights based on their professional experience in the financial and investment sector. In this case, Andrew A. Kunsak, a representative from the law firm Sidley Austin LLP, will serve as an investment banker declarant in the SEC vs Ripple Labs lawsuit.
One of the main issues in the ongoing case is the rejection of the SEC’s plea to seal documents related to the Hinman speech. This speech, delivered by former SEC official William Hinman in 2018, has immense significance as it could potentially shed light on the SEC’s stance on whether XRP qualifies as a security.
Simultaneously, Ripple’s request to seal information about XRP sales, including programmatic and institutional sales, further adds to the complexity. Amidst these intricate legal maneuvers, Kunsak’s role becomes pivotal. As an expert in the financial and investment sector, his insights hold the potential to reshape the court’s understanding of XRP’s nature and implications.
Kunsak’s objective aligns with safeguarding stakeholders- a group that encompasses investors, market participants, and Ripple itself. His expert testimony will seek to present a holistic view of the financial aspects surrounding XRP, offering a counterpoint to the SEC’s arguments.
SEC Submits an Interlocutory Appeal Motion
Meanwhile, the SEC is seeking an interlocutory appeal following Judge Analisa Torres’ verdict, marking a significant shift in the legal proceedings. The verdict, which ruled that programmatic sales of XRP did not fall under the classification of securities as per the Howey Test, has implications that resonate beyond the immediate case.
The SEC’s appeal seeks to challenge this determination and potentially redefine the regulatory boundaries for digital assets like XRP.
Additionally, the SEC has taken the additional step of requesting a suspension of ongoing proceedings until its concerns are adequately addressed through court clarification. This move, while procedural, holds the potential to influence the pace and trajectory of legal proceedings.
In response to these developments, Ripple’s Chief Legal Officer, Stuart Alderoty, has offered a clarification that sheds light on Ripple’s intentions. Alderoty emphasized that the organization’s pursuit of court authorization to lodge an appeal is not indicative of a challenge to the ruling on XRP’s classification.
This clarification underscores Ripple’s commitment to pursuing legal avenues within the established framework. Recently, some lawmakers in the US have chastised the SEC for using enforcement action against the crypto business rather than developing a solid framework for legal clarity.