The U.S. Securities and Exchange Commission (SEC) has formally lodged a motion to request the certification of an interlocutory appeal for two verdicts within the ongoing Ripple case involving XRP. The regulatory body has asserted that an “immediate appeal of these decisions is appropriate due to their involvement in pivotal legal matters.”
Update on SEC vs. Ripple Case
On a recent Friday, the U.S. Securities and Exchange Commission (SEC) submitted a motion to the court, urging the certification of an interlocutory appeal for two judgments related to the Ripple case that pertains to XRP. The official court document states:
The SEC respectfully appeals for this court to authorize an interlocutory appeal for two determinations made in the summary judgment order dated July 13, 2023.
The initial determination addresses the judgment that the sale and distribution of XRP by Ripple across cryptocurrency trading platforms, under its “programmatic” offerings, would not reasonably induce investors to anticipate profits arising from external efforts, as explained by the SEC.
The second determination concerns the verdict that the distribution of XRP by Ripple as a “form of payment for services,” termed as “other distributions,” lacks legal adequacy to be categorized as an “investment of money,” as additionally emphasized by the securities oversight body.
The SEC contended:
The urgency to appeal these decisions is well-founded due to their involvement in essential questions of law, where substantial scope exists for differences in opinions. Seeking an appellate ruling on these matters promptly could significantly expedite the ultimate resolution of this legal dispute.
As per the court’s August 17 order, Ripple has a deadline until September 1 to present its response. Subsequently, the SEC is required to submit its counter, if any, by September 8.
Opposition has arisen from Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen against the SEC’s bid for an interlocutory appeal. Stuart Alderoty, Ripple’s chief legal officer, posted on Twitter last week: “No extraordinary circumstances warrant departure from the rule mandating the resolution of all issues involving all parties before initiating an appeal.”
Frequently Asked Questions (FAQs) about Interlocutory Appeal
What is the SEC’s recent motion regarding the Ripple-XRP case?
The U.S. Securities and Exchange Commission (SEC) has filed a motion to request the certification of an interlocutory appeal for two specific rulings within the Ripple case concerning XRP. The SEC contends that an immediate appeal is necessary due to these rulings involving essential questions of law.
What were the two key rulings mentioned in the motion?
The first ruling pertains to the determination that Ripple’s “programmatic” offers and sales of XRP across cryptocurrency trading platforms do not lead investors to expect profits from external efforts. The second ruling relates to the judgment that Ripple’s distribution of XRP as a “form of payment for services” lacks legal sufficiency to be considered an “investment of money.”
Why does the SEC believe an interlocutory appeal is warranted?
The SEC argues that these rulings raise significant legal questions, leading to potential differences in opinions. Seeking an appellate ruling promptly could accelerate the resolution of the overall litigation.
How has Ripple responded to the SEC’s request for an interlocutory appeal?
Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen have opposed the SEC’s request, emphasizing that there are no extraordinary circumstances justifying an appeal before resolving all issues involving all parties.
What is the timeline for further actions in this case?
As per the court’s order dated August 17, Ripple has until September 1 to present its response. Following this, the SEC must file its reply, if any, by September 8.
What is the potential impact of this appeal on the Ripple-XRP case?
More about Interlocutory Appeal
- U.S. Securities and Exchange Commission (SEC)
- Ripple Official Website
- [SEC v. Ripple Court Documents](provide link if available)
- [SEC’s July 13, 2023 Order on Summary Judgment](provide link if available)
- [Ripple’s Response Deadline – Court Order](provide link if available)