It seems that the battle between Ripple and SEC is far from over.
The United States Securities and Exchange Commission (SEC) is gearing up to contest a judicial decision surrounding the Ripple Labs case from July. The initial ruling stated that XRP transactions to regular consumers didn't constitute a security sale.
Almost a month after the Judge's ruling, the SEC contacted Judge Analisa Torres on August 9th, expressing their intent for the appellate court to reexamine the recent ruling.
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The US securities regulator requested that the case would be paused while the appellate court examines the matter.
The SEC's argument rests on substantial grounds for differing opinions. In their letter, the regulator demanded an "interlocutory review," citing existing divisions in legal interpretation within the district.
These two issues involve controlling questions of law on which there is substantial ground for differences of opinion as reflected by an intra-district split that has already developed.
To further strengthen their point, the SEC referred to a separate case against Terraform Labs, where the Judge ruled contrary to Torres. This instance, where cryptocurrencies sold on crypto exchanges were considered securities, illustrates the complex and differing interpretations existing within the legal system.
Only a month before, Ripple had enjoyed a minor win against the SEC, with the ruling that the XRP token itself was not a security. Yet, Judge Torres added that specific sales, such as those to large institutions, might be classified as securities.
It is worth noting that the ripple effect of this appeal is profound. The legal battle with the SEC doesn't just concern Ripple Labs; it could change the trajectory of multiple ongoing cases. The SEC is entangled in legal confrontations with several crypto entities like Binance and Coinbase over similar issues. Their decision to appeal might impact how these cases are viewed and handled.
The SEC's decision to appeal the Ripple Labs ruling adds another layer of complexity to an already intricate legal landscape surrounding cryptocurrencies. This appeal and its potential implications will likely continue to be a focal point in legal discussions and could shape how cryptocurrencies are classified and regulated.
