The SEC Appeals Judge’s Decision in Case Against Ripple Labs
The Securities and Exchange Commission (SEC) has filed a motion to appeal a judge’s decision in its case against Ripple Labs. The agency believes that there are controlling questions of law with substantial differences of opinion that warrant an interlocutory review. The SEC cited a recent case where the judge rejected the same approach as Judge Analisa Torres. Torres previously ruled that some of Ripple’s sales did not violate securities laws and that other direct sales were considered securities. The SEC is specifically looking to appeal programmatic sales and other distributions of XRP.
The Road to Appeal
In order to appeal, the SEC must first receive approval from the United States District Court Southern District of New York and then from the court of appeals. If approved, the Second Circuit would need permission to accept the case for interlocutory appeal. This process is crucial for the SEC to advance the termination of the litigation in an efficient manner, avoiding two remedies phases and two trials.
Possible Ripple Appeal
Ripple also has the option to appeal Judge Torres’ ruling. It is expected that Ripple will make a similar request in connection with the court’s decision regarding the Institutional Sales. Gary DeWaal, senior counsel at the law firm Katten, believes that the SEC’s appeal was anticipated.
Hot Take
The SEC’s decision to appeal the judge’s ruling in the case against Ripple Labs highlights the ongoing legal battle between the two parties. This appeal will determine the fate of programmatic sales and other distributions of XRP, shedding light on the classification of these transactions as securities. Both the SEC and Ripple are fighting to protect their respective interests and clarify the regulatory landscape surrounding cryptocurrencies.
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