Judge Approves Investment Banker’s Role in Ripple-SEC Case

In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Judge Analisa Torres has granted permission for an investment banker to appear as a declarant. 

This decision aims to address issues related to sealed court orders, particularly those involving the SEC’s request to seal Hinman speech documents and Ripple’s plea to protect information regarding XRP sales.

The investment banker, Andrew A. Kunsak, from the law firm Sidley Austin LLP, has been granted the opportunity to serve as a declarant in the case of U.S. SEC v. Ripple Labs. This move comes after Ripple previously opposed a similar appearance by an investment banker declarant aligned with the SEC’s stance.

The purpose of this decision is to prevent the disclosure of potentially sensitive information, following an earlier sealed court directive. The investment banker declarant seeks to safeguard their stakeholders’ interests, especially in light of the SEC’s intent to challenge Judge Torres’ summary judgment decision.

SEC Filed for Interlocutory Appeal

The SEC has recently filed a motion seeking an appeal regarding Judge Torres’ ruling that programmatic sales of XRP do not classify as securities under the Howey Test. Additionally, the regulatory body is seeking a suspension of ongoing proceedings until its concerns are addressed through court clarification.

Stuart Alderoty, Ripple’s chief legal officer, clarified that the company’s intention is to seek court authorization for an appeal and not to challenge the ruling on XRP’s classification as a security.

Meanwhile, the value of XRP has experienced a slight decrease of 3% within the last 24 hours, with the current price standing between $0.59 and $0.60.

In a separate but related development, Judge Analisa Torres’ approval of the investment banker’s notice of appearance is a significant step in the ongoing Ripple-SEC case. This move aims to protect confidential information, particularly regarding the Hinman Speech Documents, which have been sealed by the court.

Andrew A. Kunsak, representing Sidley Austin LLP, has been granted the role of an investment banker declarant in the lawsuit. This decision is vital to maintaining confidentiality and mitigating uncertainties as the Commission seeks to appeal the Court’s summary judgment ruling.

Ripple’s head lawyer, Stuart Alderoty, has indicated that the company will respond to the SEC’s interlocutory brief this week. Notably, the SEC’s appeal rights are limited at this stage, and they are seeking permission for an interlocutory appeal. Ripple is set to submit its response to the Court in the coming week.

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