- SEC pushes for mid-case appeal in Ripple lawsuit, citing the need to clarify XRP’s securities law violation.
- Judge Torres ruled that XRP violated federal securities law with institutions but not with retail investors, sparking disagreement with another judge.
- An appeal could impact the cryptocurrency industry, pending approval by Judge Torres.
The US Securities and Exchange Commission (SEC) has delivered a resounding response to Ripple’s opposition memo, intensifying its efforts to secure a mid-case appeal. The heart of the matter revolves around whether Ripple violated securities laws by offering XRP to retail investors through cryptocurrency exchanges, a question that the SEC believes requires immediate appellate court intervention.
The SEC’s response comes on the heels of Judge Analisa Torres’ July ruling, which found Ripple guilty of breaching federal securities laws when selling XRP to institutional investors but cleared them of wrongdoing concerning retail investors.
This ruling raised eyebrows, especially as Judge Jed Rakoff, in the same court, reached a different conclusion in a separate SEC case. The SEC has seized upon this inconsistency to bolster its argument for an interlocutory appeal, allowing the appellate court to address crucial legal questions. At the same time, the case continues in the lower court.
If Judge Torres grants the SEC’s motion for an appeal, it could have profound ramifications for the cryptocurrency industry, potentially setting legal precedents that impact how cryptocurrencies are treated under securities laws.
With the battle lines drawn, the crypto world watches closely as the SEC and Ripple engage in this high-stakes legal dispute. As the legal wrangling intensifies, there is growing anticipation that the outcome of this case could lean in favor of Ripple, potentially reshaping the regulatory landscape for digital assets and redefining the boundaries of securities laws in the cryptocurrency space.
