In a recent development, the U.S. Securities and Exchange Commission (SEC) has expressed its intention to appeal a significant ruling related to Ripple’s XRP sales.
SEC’s Appeal on the Ripple Verdict
On Wednesday, the SEC revealed their plan to file an interlocutory appeal. They aim to challenge the judge’s recent decision regarding Ripple’s programmatic XRP sales. The regulator believes an approved interlocutory appeal might eliminate the need for two separate trials.
The SEC is particularly keen to contest the Court’s perspective on Ripple’s “Programmatic” sales of XRP. The Court’s ruling stated these offers, made over crypto trading platforms and Ripple‘s “Other Distributions” in return for labor, didn’t equate to the offer or sale of securities under the Howey test.
Judge Analisa Torres of the U.S. Southern District Court concluded last month that Ripple’s direct XRP sales to major institutional players violated securities regulations. However, she deemed their programmatic sales to the general public on exchanges compliant.
Upcoming Trials and Deadlines
While Judge Torres addressed some critical points, she left several issues undecided. Consequently, she has provisionally set a trial for these lingering concerns for the second quarter of 2024. The SEC’s document also highlighted that Ripple must reply by Aug. 16, 2023.
Following this, the SEC plans to submit their initial brief on the appeal by Aug. 18. This timetable gives Ripple a two-week window for their response, after which the SEC has another week for a rebuttal, contingent on the judge’s endorsement.
Previous Indications by the SEC
This isn’t the SEC’s first hint at a possible appeal. In a distinct case involving Terraform Labs, SEC attorneys had urged Judge Jed Rakoff, from the same Court, to disregard Judge Torres’ decision. While assessing Terraform Labs’ appeal for dismissal of its SEC lawsuit, Judge Rakoff ultimately dismissed it. Notably, he rejected Torres’ stance on programmatic sales during his ruling.
The unfolding drama between the SEC and Ripple underlines the ever-evolving landscape of cryptocurrency regulations. As Ripple braces for the SEC’s appeal, the crypto community awaits further clarity.
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