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- The SEC is appealing a July court decision that ruled XRP is not a security when sold to retail investors.
- An August 9 letter to Judge Torres outlines the SEC’s request for an appellate court review, seeking to put the case on hold during the appeal.
In a dynamic turn of events, the United States Securities and Exchange Commission (SEC) has announced its intention to appeal the July ruling regarding Ripple Labs’ sale of XRP, as stated in an August 9 letter and confirmed by tweets from legal experts!
SEC Challenges Court’s Decision on XRP
The SEC’s decision to appeal arises from a July court ruling that determined XRP, priced at $0.63 at the time, is not a security when sold to retail investors. In its August 9 letter to Judge Analisa Torres, the presiding authority over the case, the SEC voiced that her decision merits a reexamination by an appellate court.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: SEC Files Letter outlining its basis for filing a Motion for Leave to File an Interlocutory Appeal regarding “Programmatic” offers and sales to XRP buyers over trading platforms and Ripple’s “Other Distributions.”…
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 9, 2023
Request to Put the Case on Hold
Emphasizing the complexity of the matter, the SEC has asked Judge Torres to freeze the case during the appeal. This request highlights the SEC’s concern over multiple pending court cases against crypto firms, such as Binance and Coinbase, which could be impacted by this appeal’s outcome.
The letter stated: “Interlocutory review is warranted here,” requesting an immediate review, and citing “substantial ground for differences of opinion” and an “intra-district split” that has developed.
AND… the SEC continues making questionable decisions, requesting an interlocutory appeal.
Note that it is NOT appealing whether XRP itself is a security – just its losses on the programmatic and individual sales issues. https://t.co/GziVLp23mT
— Jeremy Hogan (@attorneyjeremy1) August 9, 2023
The SEC’s Stance on Ripple’s XRP Sales
The SEC’s letter further clarifies its position, seeking to certify the court’s decision that Ripple’s XRP offers, including sales on crypto exchanges and individual sales, were not securities. Moreover, it referenced the judge’s decision against Terraform Labs, which had rejected Torres’s ruling, proposing that cryptocurrencies sold on exchanges could also be securities.
The dispute between the SEC and Ripple has been contentious, and this latest move comes nearly a month after Ripple achieved a partial victory regarding XRP’s securities status.
Judge Torres’s ruling elucidated that the XRP token is not a security in itself. However, she specified that sales of XRP tokens might qualify as securities in specific scenarios, such as when sold to institutional investors but not when traded on exchanges to retail traders.
