SEC Asks Court To File Interlocutory Appeal Vs. Ripple, XRP Price Stable
August 10 2023 - 12:25AM
NEWSBTC
In a meticulously detailed letter to Judge Analisa Torres of the
Southern District of New York, the US Securities and Exchange
Commission (SEC) has delineated its grounds for seeking an
interlocutory appeal against Ripple Labs Inc. This move, which has
sent ripples (pun intended) through the XRP community, focuses on
the intricate legalities surrounding Ripple’s sales and
distributions of XRP. Ripple Vs. SEC: Interlocutory Appeal Incoming
The SEC’s primary contention revolves around Ripple’s
“programmatic” sales to XRP buyers over crypto asset trading
platforms and Ripple’s “other distributions” in exchange for labor
and services. The regulatory body asserts that these transactions
should be classified as offers or sales of securities, drawing upon
the precedent set by the Howey case. Related Reading: Pro-XRP
Lawyer John Deaton Says He Is Willing To Bet That Ripple Will Win
SEC Appeal The SEC’s letter states, “Specifically, the SEC seeks to
certify the Court’s holding that Defendants’ ‘Programmatic’ offers
and sales to XRP buyers over crypto asset trading platforms and
Ripple’s ‘Other Distributions’ in exchange for labor and services
did not involve the offer or sale of securities under SEC v. W.J.
Howey Co., 328 U.S. 293 (1946).” Delving deeper into the document,
the SEC underscores the existence of an intra-district split (Judge
Jed Rakoff’s ruling in the SEC vs. Terra case) indicating that
there are substantial grounds for differences in legal opinion. The
letter points out, “Interlocutory review is warranted here. 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.” The SEC further
draws attention to the potential implications of the court’s
previous order, suggesting that it could influence a multitude of
pending litigations. The document reads, “The Programmatic Sales
and Other Distributions rulings concern issues that may arise in
various pending cases, including many in this Circuit where the
alleged investment contracts were offered and sold by issuers –
like Ripple – on crypto asset trading platforms or for non-cash
consideration.” Related Reading: XRP Price: Breaking This Key
Resistance Could Propel Crypto To $21 By 2025 – Analyst Jeremy
Hogan, a legal luminary in the XRP community, weighed in, noting,
“AND… the SEC continues making questionable decisions, requesting
an interlocutory appeal. Note that it is NOT appealing whether XRP
itself is a security – just its losses on the programmatic and
individual sales issues.” Stuart Alderoty, Ripple’s Chief Legal
Officer (CLO), clarified the SEC’s intent, emphasizing that the
regulatory body is in the preliminary stages of seeking the court’s
permission for the appeal. He stated, “The SEC does not have the
right to appeal just yet which is why they are asking permission to
file an interlocutory appeal. Ripple will file its response with
the Court next week.” XRP Price Despite the intricate legal
maneuvers and the potential ramifications, XRP’s market price has
remained notably stable, suggesting a mature market response to the
ongoing legal developments. At press time, XRP actually saw a
slight uptick, trading at $0.6378. Featured image from Fox
Business, chart from TradingView.com
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