The SEC filed its interlocutory appeal over a month after Judge Analisa Torres announced the details of her preliminary decision.
In an aggressive move, the United States Securities and Exchange Commission (SEC) is appealing a crucial court decision that resulted from its litigation against Ripple Labs. The SEC is looking for a new viewpoint on the issue after the July judgment, which found that selling XRP to ordinary investors does not qualify as a security.
In an intriguing step, the SEC has informed Judge Analisa Torres, the case’s presiding judge, in writing that it intends to file an appeal. In its message, the SEC reiterates its conviction that the decision necessitates a second opinion from an appellate court.
![SEC to Appeal Ruling in Ripple Case, Seeking to Halt XRP Sales image 65](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/08/image-65.png?resize=1004%2C747&ssl=1)
![SEC to Appeal Ruling in Ripple Case, Seeking to Halt XRP Sales image 65](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/08/image-65.png?resize=1004%2C747&ssl=1)
As part of its appeal, the SEC has requested Judge Torres to temporarily suspend the ongoing proceedings, emphasizing the potential impact on other pending cases depending on the outcome of the appeal.
Related: CDC Report Finds Ripple Case Ruling to Be Important
Legal Battles and Unresolved Questions
Beyond Ripple, the SEC is involved in a legal battle over potential securities breaches with a plethora of cryptocurrency companies, including titans of the sector like Binance and Coinbase. In this context, the SEC’s letter aims to highlight the intricacy of the pertinent issues by pointing to “controlling questions of law” that demand additional investigation because of existing disagreements in the law.
AND… the SEC continues making questionable decisions, requesting an interlocutory appeal.
— Jeremy Hogan (@attorneyjeremy1) August 9, 2023
Note that it is NOT appealing whether XRP itself is a security – just its losses on the programmatic and individual sales issues. https://t.co/GziVLp23mT
The SEC’s message also draws attention to a significant aspect of the case: the judge’s ruling in a separate lawsuit against Terraform Labs. This judgement, which overturned Torres’ finding, brought up an important issue:
Are cryptocurrencies purchased on exchanges also considered securities?
The SEC’s appeal adds a new level of complication to the developing legal landscape surrounding cryptocurrency rules as Ripple celebrates its partial success in the dispute. The crypto community is ready for additional legal twists and turns due to the SEC’s effort to reexamine the decision and any potential repercussions, which might change the regulatory course of the sector.
Related: US Lawmaker Calls on SEC to Reassess Crypto Stance After Ripple Ruling