In a significant twist, Judge Analisa Torres has granted the U.S. Securities and Exchange Commission (SEC) the right to file an interlocutory appeal in the Ripple case, paving the way for a potential legal showdown that could even reach the Supreme Court.
The SEC’s pursuit of an appeal follows a recent federal ruling that dismissed claims of XRP transactions on exchanges violating securities laws. With the clock ticking, the SEC has until August 18 to present its appeal motion, while Ripple Labs must respond by September 1.
#XRPCommunity #SECGov v. #Ripple #XRP The Court has set a briefing schedule for the SEC’s request to file a Motion for Leave to File an Interlocutory Appeal. This does not mean an interlocutory appeal has been authorized. It just means the SEC is allowed to request it. pic.twitter.com/vjsUSJELU6
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 17, 2023
The Ripple case, initiated in December 2020, alleges that Ripple unlawfully raised $1.3 billion through XRP sales, labeling the token an unregistered security. A recent ruling from Judge Torres recognized certain sales as non-offenders due to a unique blind bid process. However, direct sales to institutional investors were classified as securities, resulting in a partial victory for the SEC.
As the SEC gears up for an appeal targeting programmatic sales and “other distributions” involving XRP, questions arise about the potential escalation of the legal battle. If the SEC faces defeat in the appeal, the looming question remains: Will the regulatory body take this case to the Supreme Court?
The appeal process hinges on permission from the Second Circuit, adding a layer of complexity to the journey. Meanwhile, the announcement of the appeal motion catalyzed a swift 3.6% decline in XRP’s value within an hour, spotlighting the ripple effect of the case on the crypto market. The Ripple case holds broader implications for the regulation of digital assets in the United States, making it a focal point of interest within the crypto community and beyond.
