The legal struggle between the Securities and Exchange Commission (SEC) of the United States and Ripple Labs is still ongoing. There are fresh developments giving light on the next steps. Judge Analisa Torres granted the SEC permission to file an interlocutory appeal motion in the ongoing Ripple Labs lawsuit. The ruling’s implications extend to numerous court cases, marking a pivotal moment in the extended legal dispute.
Interlocutory appeal lets parties challenge trial court rulings while other case elements are ongoing. The SEC’s request was submitted on August 9, with the motion expected by August 18. Ripple can oppose.
This ruling comes after a recent debate between Ripple Labs and the SEC on the possibility of an appeal. Ripple’s legal team presented three main reasons in opposition to the SEC’s appeal request. They argued that the appeal should be based on a purely legal matter, which the SEC’s request does not fulfill. Furthermore, Ripple’s lawyers stated that the SEC’s claim of an erroneous court ruling is without validity, and that filing an early appeal will not speed up the end of litigation procedures.
Ripple Legal Battle Continues: Implications of SEC’s Interlocutory Appeal Motion
The July 13 order by Judge Torres was critical in the ongoing debate. The judgment established that when distributed through public sales, Ripple’s native XRP token is not categorized as a security. However, the ruling supported XRP’s status as a security in the context of institutional sales.
The SEC sued Ripple Labs and its top executives, Brad Garlinghouse and Chris Larse, in December 2020. The regulatory agency accused Ripple of marketing an unregistered securities, sparking a judicial battle that has captivated the cryptocurrency sector.
Reminder – the request for appeal (even if granted) doesn’t change the fact that XRP is not a security. That’s not up for debate / trial. But the SEC continues to claim that Chris and I acted recklessly in believing that XRP is not a security. That’s utter nonsense. 1/2 https://t.co/pG7z0jsjlt
— Brad Garlinghouse (@bgarlinghouse) August 16, 2023
Brad Garlinghouse discussed the subject in a recent interview with Bloomberg. He predicted that the SEC’s appeals procedure would be lengthy, adding that the current legal position is that XRP is not a security. Garlinghouse emphasized the possibility of the appeals process reinforcing Judge Torres’ original finding, notably with the categorisation of XRP during retail purchases.
The cryptocurrency industry is keeping a careful eye on the SEC’s motion for interlocutory appeal, noting the possible consequences for Ripple Labs, XRP, and the broader legal landscape for digital assets. The case’s intricacies and nuances highlight the challenges that regulators, innovators, and market participants encounter as they seek clarification in a developing regulatory framework.