Ripple and SEC legal battle take yet another turn.
Recent developments in the case between the United States Securities and Exchange Commission (SEC) and Ripple Labs have taken an interesting turn. Judge Analisa Torres permitted SEC to proceed with a motion for an interlocutory appeal against Ripple Labs.
In the United States legal system, an interlocutory appeal is a process where specific rulings made by a trial court can be appealed, even as the broader case continues.
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This permission paves the way for the SEC to approach the US Court of Appeals for the Second Circuit by the set deadline of August 18th. Meanwhile, Ripple also retains the right to present an opposition to this motion.
It's worth noting that Ripple Labs had earlier expressed reservations about any potential appeal in this matter. In an interview with Bloomberg in July, Ripple CEO Brad Garlinghouse stated:
As a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly, we are very optimistic.
In their bid to challenge the SEC's request, Ripple's legal team highlighted three primary reasons. Firstly, they stressed that any appeal should hinge on a clear legal question, and in this case, they believed the SEC didn't present any new legal dilemmas.
Ripple's lawyers also questioned the SEC's claim of an incorrect ruling, emphasizing that the difference of opinion shouldn't be the ground for appeal. Moreover, they asserted that such an immediate appeal might not contribute positively to ending the litigation proceedings efficiently.
Tracing back, the SEC's conflict with Ripple started in December 2020. The disagreement arose over allegations that Ripple and its top executives, including Brad Garlinghouse and Chris Larsen, were distributing unregistered security. On July 13th, 2023, Judge Torres issued a verdict where she recognized XRP as a security only in the context of institutional sales, while it was not considered a security in public sales.
The tussle between the SEC and Ripple Labs continues to evolve with this latest permission for an appeal motion. While the outcome remains uncertain, the dedication with which both parties are defending their stance is evident. Regardless of the verdict, the case is setting a significant precedent in the realm of cryptocurrency regulations.
