In the latest twist to the ongoing legal battle between the U.S. SEC and Ripple, Judge Analisa Torres has greenlit the SEC’s motion to appeal the ruling that cleared Ripple of violating securities laws in relation to its XRP sales. The decision sets the stage for a potential appeal court showdown, injecting renewed energy into the closely watched case.
As per a report, Judge Torres, presiding over the U.S. District Court for the Southern District of New York, has granted the SEC’s request for leave to file a motion for interlocutory appeal, opening the door for the regulatory body to challenge her previous ruling. The SEC, which had hinted at its intention to appeal back in July, now has until September 8 to file the motion, following which Ripple will have until September 1 to formulate its response.
This development comes on the heels of Ripple’s partial victory in July, where the court determined that certain XRP sales did not run afoul of securities laws. If the SEC’s appeal is successful, it could potentially pave the way for a comprehensive review of the case in an appeals court, creating a pivotal juncture in the legal proceedings.
Ripple’s Chief Legal Officer Expresses Opposition
Ripple’s Chief Legal Officer, Stuart Alderoty, previously voiced the company’s opposition to the SEC’s appeal, arguing that no extraordinary circumstances warrant an appeal before all relevant issues are resolved. The looming legal tussle now hinges on Judge Torres’ decision and her evaluation of the SEC’s arguments for appeal.
Legal experts have weighed in, suggesting that the SEC faces a challenging path ahead. Bill Hughes, ConsenSys Senior Counsel and Director of Global Regulatory Matters pointed out that the SEC’s own inconsistent stance on the significance of the Ripple case could weaken its appeal. Hughes remarked that convincing the court might be an uphill battle for the SEC, as it seeks approval from both Judge Torres and the Second Circuit Court of Appeals to move forward with its appeal.
While the appeal process unfolds, the rest of the case is expected to proceed as planned. However, if the SEC secures approval from both fronts, the circuit court might impose a potential stay on proceedings until the appeal is resolved.
The crypto community anxiously awaits the next chapter in the Ripple vs. SEC battle. Legal maneuvers and strategic arguments are setting the stage for a high-stakes legal showdown that has the potential to reshape the regulatory landscape for digital assets.
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