SEC Files Appeal Against Ripple as Legal Battle Intensifies

The SEC levels allegations against Ripple, accusing the company of stalling resolution to preserve unregulated XRP sales.

Gary Gensler about to pop into court quickly and drop of some documents.
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  • A duel between Ripple and the SEC has erupted over the potential of an interlocutory appeal.
  • The SEC has sought a speedy resolution, while Ripple has asked for regulatory clarity.
  • The judge‘s nuanced ruling has offered a partial win for both the SEC and Ripple.

In the relentless legal tussle between the Securities and Exchange Commission (SEC) and blockchain giant Ripple, the battleground has shifted again to the hallowed chambers of a New York courtroom. As the dust settles from the recent high-profile ruling, both parties are locked in a heated dispute over the prospect of an interlocutory appeal.

SEC Urges Court to Speed Up Proceedings

The SEC makes a compelling case for streamlining the proceedings, emphasizing the imperative of an efficient resolution. Meanwhile, Ripple stands firmly in opposition, invoking questions of law and strategy.

With the intense legal battle, the SEC has swiftly countered Ripple’s assertion, contending that a New York court should not obstruct the agency’s bid to appeal a segment of a high-profile judgment.

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Initiating the legal maneuver, the agency submitted a motion to the U.S. District Court in New York, urging it to officially endorse an interlocutory appeal request made the prior month. On Friday, the SEC posited that granting the interlocutory appeal would streamline the judicial proceedings, curtailing unnecessary protraction.

Ripple Firmly Opposes SEC’s Plea for Appeal

While the SEC is steadfast in its resolve to scrutinize both pragmatic sales and other XRP exchanges for goods and services, Ripple, on the other hand, plans to deny the regulator’s request for appeal. 

The cryptocurrency firm asserts that the court’s summary judgment does not present an overarching question of law conducive to an interlocutory appeal.

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They contend that granting the SEC’s appeal could open the door for the regulator to initiate a cross-appeal, thereby necessitating a comprehensive review of the entire evidentiary record rather than a selective emphasis on the SEC’s preferred segments, as Ripple’s legal counsel articulated in their recent submissions.

On the Flipside

  • Judge Analisa Torres’ ruling in July did provide some clarity by distinguishing between programmatic sales and institutional investor sales of XRP
  • This case underscores the broader challenge of establishing clear and consistent regulatory frameworks for cryptocurrencies, which remains a point of contention within the industry.
  • This is a follow-up filing by the SEC of its Reply Memorandum in Further Support of its Motion to Certify Interlocutory Appeal.

Why This Matters

The SEC’s decision to appeal the ruling is a significant development in the ongoing legal battle between the agency and Ripple. The case outcome could have a major impact on the cryptocurrency industry, as it could set a precedent for how the SEC regulates cryptocurrencies.

To learn more about the latest developments in XRP production predictions, check out the related article here:
Ripple CTO Confirms Two Predictions from XRP Productions

For the most recent insights on Bitcoin’s fluctuating fortunes over the past two weeks, read here:
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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.