A Bit of Backstory
– Last month, Judge Analisa Torres ruled that secondary sales of XRP do not constitute investment contracts.
– This ruling was seen as a victory for Ripple and caused the price of XRP to surge by almost 100%.
– However, the price of XRP has since dropped by close to 50% and is currently trading at $0.50.
– The SEC was unhappy with the ruling and filed an interlocutory brief to appeal it.
– Ripple argued that there is no exceptional circumstance that justifies an appeal before all issues are resolved.
Court Greenlights SEC’s Request
– The US District Court for the Southern District of New York has granted the SEC’s request to file a motion for an interlocutory appeal.
– Some people have mistakenly assumed that XRP’s crash is directly related to this decision, but it only authorizes the SEC to request an appeal.
– James Filan, a defense lawyer and former federal prosecutor, clarified this misunderstanding.
Hot Take
The ongoing case between Ripple and the SEC continues to be a topic of discussion in the crypto community. Despite the recent ruling in favor of Ripple, the price of XRP has experienced a significant drop. The court’s decision to allow the SEC to file a motion for an interlocutory appeal adds another layer of complexity to the case. It’s important for crypto readers to understand the nuances of these developments and not jump to conclusions about their immediate impact on XRP’s price.
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