SEC authorized an interlocutory appeal in Ripple’s battle, influencing XRP’s regulatory clash outcome with potential implications for both parties.
Amid the ongoing legal feud between Ripple and the United States Securities and Exchange Commission (SEC), US District Judge Analisa Torres has authorized the SEC to file a motion seeking permission for an interlocutory appeal.
According to a document released by James K. Filan, a lawyer supporting Ripple, the SEC can submit the motion on August 18. On the other hand, Ripple has until September 1 to present its opposition to the SEC’s motion. The document also outlines that the SEC can respond to Ripple’s opposition by September 8 only if the regulatory body deems it necessary.
SEC vs. Ripple Unraveling Interlocutory Appeal
James K. Filan provided clarity, emphasizing that Judge Torres’ decision to grant the SEC permission to file the motion should not be misconstrued as a direct endorsement of the interlocutory appeal. This procedural move specifically facilitates the SEC’s ability to request the interlocutory appeal process formally.
However, if Judge Torres grants the SEC’s request for the interlocutory appeal, the SEC would still require permission from the Second Circuit Court to file the appeal officially. It’s important to recall that the SEC initially requested approval for an interlocutory appeal, which XRP predictably opposed. In its opposition, XRP argued that the July 13 ruling lacked a controlling question of law.
Despite Ripple’s stance, legal expert John Deaton speculated that the court might grant the SEC’s request, citing Judge Jed Rakoff’s comments regarding XRP’s ruling. Deaton believes that allowing the interlocutory appeal would enable Judge Torres to justify her July 13 ruling based on evidence.
The SEC’s interlocutory appeal focuses on Judge Torres’ ruling regarding Ripple’s programmatic sales of XRP and other distributions. The court’s decision concluded that these transactions were not securities. However, the court did classify XRP’s previous sales of XRP to institutional investors as securities. As a result, the SEC’s appeal pertains specifically to XRP’s institutional sales.
The final resolution of this appeal process holds immense significance, carrying profound implications for both the SEC and Ripple. It will intricately influence the trajectory of their ongoing legal confrontation concerning the regulatory categorization of XRP.