The U.S. Securities and Exchange Commission (SEC) has formally requested permission from District Judge Analisa Torres to file an interlocutory appeal in the ongoing SEC v. Ripple case concerning XRP. Additionally, the SEC aims to halt the district court proceedings through its motion.
SEC Seeks Approval for Appeal in Ripple-XRP Case On Wednesday,
the SEC addressed a letter to District Judge Analisa Torres, seeking authorization to file an interlocutory appeal concerning her judgment in the SEC v. Ripple case involving XRP. An interlocutory appeal is made before all claims are fully resolved by all parties involved. The letter outlines:
The SEC’s request specifically targets the court’s decision regarding the involvement of Defendants’ ‘Programmatic’ offers and sales to XRP buyers through crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services, which the court determined did not constitute the offer or sale of securities under SEC v. W.J. Howey Co., 328 U.S. 293 (1946).
“Interlocutory review is warranted in this instance. These two issues raise critical questions of law where there is substantial divergence of opinion, evident by an intra-district split that has already emerged,” stated the securities regulator.
Additionally, the SEC emphasized that “the motion will also seek to stay the district court proceedings,” emphasizing the necessity for “a stay of the proceedings in this court.”
Crypto Law provided insights on Twitter regarding the SEC’s stay request: “They are seeking a stay of all other proceedings in Torres’ court pertaining to the case, which means the remedies process and trial would be temporarily halted. However, obtaining a stay is not guaranteed. They might receive a temporary stay while their petition for the interlocutory appeal is reviewed, but it would likely be short-term. Nonetheless, without a stay request, their arguments for urgency in seeking the interlocutory appeal would appear weakened. Notably, a stay does not affect Torres’ ruling.”
Ripple Labs has been given one week to respond to the SEC letter. Stuart Alderoty, Ripple’s chief legal officer, tweeted on Wednesday: “The SEC does not possess the immediate ‘right’ to appeal, hence their request for permission to file an ‘interlocutory’ appeal. Ripple will submit its response to the court next week. Stay tuned.”
Will the SEC successfully appeal Judge Analisa Torres’ Ripple-XRP ruling? Share your thoughts in the comments below.
TAGS: SEC, Ripple, XRP, Interlocutory Appeal, Cryptocurrency, Securities Regulation