- SEC intends to appeal a federal judge’s ruling on Ripple’s XRP sales to retail investors.
- While Ripple’s direct XRP sales to institutional players were deemed unlawful, the sales to retail investors via exchanges were not.
The Legal Battle Deepens
The U.S. Securities and Exchange Commission (SEC) has taken a bold step, announcing its intention to lodge an “interlocutory appeal” against the latest judgment concerning Ripple’s XRP programmatic sales, according to official documents released this Wednesday.
The regulatory body, in an astute move, is appealing a segment of a recent ruling while still allowing other facets of their case against Ripple to advance to the trial stage. The strategic intent behind this decision could be to circumvent the complexities and logistical challenges of executing dual trials.
Delving into the intricacies of the SEC’s statement, they are pursuing certification of the court’s verdict. The judgment in contention centers around whether Ripple’s programmatic XRP distributions to purchasers on cryptocurrency exchanges and Ripple’s compensatory distributions for labor and services align with the criteria set by the Howey test to classify them as securities.
Only last month, a pivotal judgment was passed down by Judge Analisa Torres of the U.S. Southern District Court. She determined that while Ripple’s direct XRP transactions with institutional stakeholders contravened securities legislation, the sales to everyday retail investors via trading platforms did not. This was a significant setback for the SEC, which had initiated legal action against Ripple in 2020, positing that the company’s XRP transactions were tantamount to dealing in unregistered securities.
>> Buy XRP quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with XRP now. Visit Website <<
Providing clarity on the upcoming events, the SEC’s documentation stipulates a clear timeline. Ripple has been given until August 16 to submit their response to the SEC’s appeal initiative, after which the SEC intends to present a detailed opening brief on August 18. This sets the stage for a rigorous legal back-and-forth, with Ripple allotted a fortnight to rebut and the SEC granted an additional week to reply, contingent on the judge’s approval.
While this development is significant in the Ripple case, it’s not the SEC’s first hint at an appeal. A previous instance saw the regulatory body’s lawyers encouraging U.S. District Judge Jed Rakoff to dismiss a similar ruling as he deliberated Terraform Labs’ plea to discard its corresponding SEC lawsuit. Judge Rakoff subsequently declined the dismissal request, overriding Torres’ judgment regarding programmatic sales.
Best Crypto Exchange for Everyone:
- Invest in Ripple (XRP) and 70+ cryptocurrencies and 3,000 other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users
