The defendants will have until September 1st to react after the SEC has until August 18th to formally file its motion.
Judge Analisa Torres has given the United States Securities and Exchange Commission (SEC) permission to submit a move for an interlocutory appeal in its continuing legal dispute with Ripple Labs, in a dramatic turn of events. This calculated action by the securities watchdog follows a letter sent to Torres on August 9th pointing out the potential effects of her choice on numerous ongoing legal proceedings.
Unveiling the Interlocutory Appeal
In the world of American law, an interlocutory appeal denotes a crucial turning point where a trial court’s decision is contested while other aspects of the case move forward. The SEC is prepared to file a motion by August 18th asking for authorization to transfer the matter to the U.S. Court of Appeals for the Second Circuit with this approval. In this game of legal chess, Ripple will have an equal opportunity to respond by opposing the motion.
This courtroom drama developed as a result of Ripple Labs’ strident objection to the possibility of an appeal in the case. The legal team for Ripple painstakingly developed a counterargument, outlining three main objections to the SEC’s proposal.
First, Ripple’s legal team said that the basis for an appeal must be a clear-cut legal problem, which the SEC’s request did not satisfy because there were no unique legal concerns that required consideration. Ripple also refuted the SEC’s assertion that a court decision was incorrect by emphasizing its inadequacy. Additionally, the company argued that hastening an appeal would neither advance or improve the current legal process.
Shaping the Ripple Landscape
On July 13th, Judge Torres issued a key ruling, holding that the native XRP cryptocurrency of Ripple cannot be classified as a security when it is given through public sales. However, XRP now has a security status in institutional sales as a result of this decision.
When the SEC filed a lawsuit against Ripple and its top executives, Brad Garlinghouse and Chris Larsen, in December 2020, the Ripple saga was launched. The case entered the center of legal discussion when the regulator claimed that the corporation sold an unregistered security.
In a recent Bloomberg interview, Ripple CEO Brad Garlinghouse stated his support for a drawn-out appeals process as Ripple and the SEC engage in this complex legal dance. Garlinghouse noted that the existing law of the land indicates that XRP is not a security with unwavering faith. He expects the SEC’s probable appeal to take some time, but he is still confident that Torres’ ruling will hold even in the face of extra legal wrangling.
Given these circumstances, and considering Ripple and the XRP token are grappling with their own issues in an environment that’s not conducive to risk-on assets, the likelihood of further price correction becomes more pronounced. Thus, a retest of the $0.54 level, which acted as resistance in June 2023, appears quite possible.