The United States SEC is taking steps to challenge a recent court ruling regarding the status of XRP, a digital asset developed by Ripple Labs. The court decision, issued in July, stated that the sale of XRP to retail investors should not be classified as a security.
The SEC is now seeking an appeal, expressing its concerns in a letter addressed to Judge Analisa Torres, who oversaw the case. The SEC’s letter outlines its intention to file a motion for leave to pursue an interlocutory appeal under 28 U.S.C. § 1292(b), referring to adverse liability determinations made in the July 13th, 2023 order.
The defendants, Ripple Labs, were granted summary judgment in this order. Additionally, the SEC is seeking a suspension of district court proceedings throughout the motion and potential subsequent appeal process.
The main point of contention for the SEC lies in its disagreement with the court’s assessment that the sale of XRP does not meet the definition of securities, as established in the precedent case SEC v. W.J. Howey Co.
As per the letter, the commission strongly believes that a fresh examination of this matter is crucial not only for this specific case but also for related litigations that aim to achieve an efficient and definitive resolution.
To facilitate the appeal process, the SEC proposes a comprehensive briefing schedule. The schedule suggests that the opening brief will be filed on August 18th, 2023, followed by the defendants’ opposition on September 1st, 2023, and the SEC’s reply on September 8th, 2023.
SEC Vs. Ripple Cae Trial Scheduling By Judge Torres
Judge Torres, who presided over the case, has announced her intention to schedule a jury trial for the SEC vs. Ripple case in the second quarter of 2024. She has instructed both parties to provide blackout dates for the trial by August 23rd, setting additional deadlines for pretrial filings and exhibit submissions.
In response to recent developments, Ripple’s Chief Legal Officer commented regarding the SEC’s appeal request. He emphasized that the SEC’s ability to file an interlocutory appeal is dependent on acquiring necessary permission and shed light on the fact that the SEC does not possess an automatic “right” to appeal at this stage. Furthermore, Ripple intends to submit its response to the court in the forthcoming week.
However, as the legal battle between the SEC and Ripple Labs continues, the ongoing appeal process aims to clarify the regulatory status of XRP and its potential impact on the wider cryptocurrency industry. The outcome of this appeal holds significant implications for how digital assets are classified in the United States.
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