- The SEC has circled back to the XRP crypto case.
- The commission wants to seek an appeal.
- Attorneys raise multiple grounds for the appeal.
The U.S. Securities and Exchange Commission (SEC) has announced plans to seek an interlocutory appeal against the July 13 court decision that ruled Ripple Labs Inc.’s XRP token is not a security when sold at crypto exchanges (to retail investors).
In a letter dated August 9, 2023, addressed to Judge Analisa Torres, the commission argued that the previous ruling issued by the trial court warrants a fresh review by a federal appellate court.
The Grounds for Appeal
The SEC revealed that the appeal would be based on several grounds, including seeking legal clarification on substantial evidence for differences of opinion.
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On this ground, the letter revisited Judge Jed Rakoff’s order on the SEC v. Terraform Labs lawsuit, where the court gave a comprehensive interpretation of the Howey test and agreed that cryptocurrencies sold on exchanges could be classified as securities. Consequently, the court rejected Judge Analisa Torres’ July 13 decision on the Ripple Case.
The letter to Judge Analisa Torres also highlighted that the Ripple case ruling had brought a particular consequence to an issue of programmatic concern concerning the SEC’s ability to enforce securities law.Â
The attorney urged Judge Torres to consider the impact an appeal will have on other lawsuits the commission is pursuing, especially in pending cases like the SEC v. Coinbase, Inc. The SEC wants the court to order a stay of proceedings during the upcoming appellate review.
The SEC’s Stance on Cryptocurrencies
The SEC views digital assets such as cryptocurrencies as securities and has always claimed regulatory authority. The commission has steered over 100 enforcement actions against companies involved with crypto, where many culminated in alternative dispute resolution agreements, such as settling.
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Read how the July 13 ruling on the XRP case inspired industry solidarity:
XRP’s SEC Victory Inspires Solidarity from Euphoric Market
Here is a look into the lawsuit against former FTX legal advisors:
