SEC to seek appeal and stay in Ripple Labs court case

The United States Securities and Exchange Commission is moving to appeal a July court choice from its lawsuit against Ripple Labs, which had ruled the sale of XRP (XRP) is not a security when sold to retail investors.In an Aug. 9 letter to Judge Analisa Torres– the presiding judge in the event– the SEC said it thought her choice warrants a fresh appearance by an appellate court.It asked Judge Torres to put the case on hold throughout the appeal, saying there are several other pending lawsuit that could be impacted depending upon the appeals result. The SEC is currently in a legal fight with a number of crypto companies, including Binance and Coinbase, over supposed securities violations. ” Interlocutory evaluation is called for here,” the SEC wrote, asking the ruling to be evaluated while the case is still pending. “These two concerns involve managing questions of law on which there is substantial ground for disagreements as shown by an intra-district split that has actually already developed.” The SEC added it looks for to certify the courts choice that Ripples programmatic XRP deals and sales on crypto exchanges and private sales were not securities.AND … the SEC continues making doubtful choices, asking for an interlocutory appeal.Note that it is NOT appealing whether XRP itself is a security – just its losses on the programmatic and specific sales problems. https://t.co/GziVLp23mT— Jeremy Hogan (@attorneyjeremy1) August 9, 2023

The SEC likewise highlighted the judges choice in its fit versus Terraform Labs who declined Torres ruling, stating cryptocurrencies sold on exchanges might likewise be securities.Related: CoinGecko now has an index for crypto tokens declared as securitiesThe SECs letter comes nearly a month after Ripple scored a partial victory over the SEC concerning the securities status of XRP. Torres ruled that the XRP token was not in itself a security. She said, however, that sales of XRP tokens can be securities in certain situations, such as when offered to institutional investors but not when offered on exchanges to retail traders.Hall of Flame: Crypto Wendy on trashing the SEC, sexism, and how underdogs can winAdditional reporting by Jesse Coghlan.

Other Questions People Ask

What is the SEC's plan regarding the Ripple Labs court case?

The SEC intends to appeal a July court ruling that determined XRP is not a security when sold to retail investors. In its letter to Judge Analisa Torres, the SEC expressed that the decision warrants a review by an appellate court. Additionally, the SEC has requested a stay on the case during the appeal process, indicating that the outcome could influence other ongoing lawsuits involving crypto companies.

Why is the SEC seeking an interlocutory appeal in the Ripple Labs case?

The SEC is seeking an interlocutory appeal to address significant legal questions surrounding the sale of XRP, particularly concerning programmatic and private sales. The agency believes there is substantial ground for disagreement on these issues, as highlighted by a split in rulings within the district. This appeal aims to clarify whether these specific sales can be classified as securities, which could have broader implications for the cryptocurrency market.

How does the SEC's appeal affect Ripple Labs and the broader crypto industry?

The SEC's appeal could have significant ramifications for Ripple Labs, as it seeks to challenge the court's previous ruling that favored the company. If successful, the appeal may redefine how XRP and potentially other cryptocurrencies are classified in terms of securities law. Furthermore, this case could set a precedent that impacts ongoing legal battles between the SEC and other crypto firms like Binance and Coinbase.

What implications does the SEC's letter have for future cryptocurrency regulations?

The SEC's letter signals its intent to pursue stricter regulatory clarity in the cryptocurrency space, particularly regarding what constitutes a security. By appealing the Ripple Labs ruling, the SEC aims to establish a legal framework that could influence how cryptocurrencies are treated under U.S. law. This move may lead to more rigorous scrutiny of crypto transactions and affect how companies operate within this evolving market.