The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the Ripple XRP case by requesting permission to file an interlocutory appeal. This move comes in the wake of a federal judge’s ruling that determined XRP sales conducted through exchanges did not breach securities law.
The request was filed shortly after Judge Analisa Torres, presiding over the U.S. District Court for the Southern District of New York, granted the SEC’s permission to present its appeal argument.
The SEC argued that choosing an interlocutory appeal over a traditional one is necessary. This is because resolving the two rulings quickly through immediate appellate review increases the chance for the Court to assess remedies for all violations the Defendants might be liable for in a single proceeding.
Today’s document argues that the Second Circuit Court of Appeals, which would handle the appeal if it’s allowed to move forward, has dealt with similar cases before to answer important questions about securities law.
“The SEC did not argue here or in Terraform that the asset underlying those investment contracts were necessarily a security (and the SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value),” the filing said.
The SEC is putting forth the point that if there is a reversal by the Second Circuit concerning the XRP offers and sales that were the basis of the Order granting Defendants summary judgment, it could enhance the chances of reaching a settlement to conclude this legal matter. Such a development could expedite the resolution of the case and potentially avoid the need for multiple trials.
What Next in Ripple Vs SEC?
As the legal proceedings unfold, Ripple has been granted until September 1, 2023, to present a response to the SEC’s motion. Subsequently, the SEC will have an additional week to reply to Ripple’s response. If Judge Torres grants approval for the interlocutory appeal, the SEC will be required to petition the Second Circuit Court of Appeals to formally take up the case.
Overall, the potential ramifications of this appeal are not limited to the Ripple case alone. The SEC acknowledges that the ruling could extend its impact to other cases involving the regulator, such as its suits against Coinbase and Binance.
