BREAKING: SEC Submits Motion For Appeal In Ripple Lawsuit

By Vince • August 18, 2023 6:21 pm • Comments

Well, that didn’t take very long at all. …

ProCoin News was among one of the first outlets to report on the stunning Ripple victory in the lawsuit lodged against it by the Securities and Exchange Commission (SEC).

In a historic ruling that should set a legal precedent, the court decided that secondary sales of XRP do not constitute security sales and that Ripple’s native currency does not satisfy all the criteria laid out in the SEC’s ‘Howey test.’

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Despite this, the SEC has filed a motion for an interlocutory appeal. … This does not mean that it will be approved, but the agency has formally filed a motion.

Crypto Law presented the full SEC motion and summarized: “This is a request that Judge Torres allow for an interlocutory (i.e. expedited) appeal to the 2nd Circuit of her decision on Programmatic and Other Sales of XRP by the Defendants. It is NOT the actual appeal, and nothing about any of this is related to the XRP token not being a security.”

 

Bloomberg confirmed the recent development:

The Securities and Exchange Commission asked a federal judge for permission to appeal her ruling that Ripple Labs’ XRP token is not a security when sold to the general public, arguing that the decision could affect other cases involving cryptocurrencies.

The SEC in court papers Friday requested that US District Judge Analisa Torres in Manhattan certify the issue for immediate appeal.

The SEC needs permission because Torres’s ruling was on a preliminary motion rather a final judgment, but the regulator said the matter was too important to wait because “the ultimate answer to these questions could affect a number of pending cases involving crypto assets.”

Two days ago, Ripple’s legal counsel, James K. Filan, presented the corresponding documents and announced: “Ripple files it’s opposition to the SEC’s anticipated motion for leave to file an interlocutory appeal.”

 

Filan explained: “The Court has set a briefing schedule for the SEC’s request to file a Motion for Leave to File an Interlocutory Appeal. This does not mean an interlocutory appeal has been authorized. It just means the SEC is allowed to request it.”

 

Ripple’s Chief Legal Officer Stuart Alderoty clarified: “The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned.”

 

FX Street provided this report detailing XRP’s price movements in response to the SEC appeal filing:

Ripple price has engaged full gear, whitewashing all the ground covered in the July 13 rally. XRP is down 15% over the last hour, 30% over the last day. The Relative Strength Index (RSI) is at a record low.

Around this news, almost $23 million XRP long positions were liquidated from the crypto market in under one hour.

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