Lawyers specializing in cryptocurrency matters are expressing strong confidence in Ripple Labs’ legal position as the United States Securities and Exchange Commission (SEC) pursues an interlocutory appeal in their ongoing case.
This has prompted discussions within the crypto community regarding the significance of the appeal, with some speculating whether it aims to challenge the classification of XRP as a non-security token.
However, legal experts in the field are assuring observers that this appeal doesn’t specifically address that matter.
On August 9th, the SEC formally notified Judge Analisa Torres of its intention to appeal the court’s ruling, seeking a fresh evaluation from an appellate court.
In response, community members have been pondering whether this move is tied to the SEC’s quest to challenge the “non-security” status of XRP.
Notably, Jeremy Hogan, a prominent crypto lawyer, delineates the distinction between the SEC’s appeal on sales-related matters and the broader classification of XRP as a security.
Hogan emphasizes that a win for the SEC in this appeal could restrict Ripple’s ability to conduct sales via exchanges.
However, he posits that exchanges might still list XRP as long as these sales aren’t facilitated by Ripple.
Oscar Franklin Tan, a crypto lawyer and Chief Legal Officer at Enjin, a non-fungible token (NFT) platform, provides further insight into the complexities of the SEC’s appeal strategy.
Tan explains that appeals typically occur once a case concludes, but the SEC is pursuing an interlocutory appeal, which means it aims to appeal even though the case remains ongoing.
Regarding the potential impact of this appeal on the main case, Tan underscores the concept of momentum.
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He clarifies that if the interlocutory appeal is permitted, the prevailing party in that appeal would gain momentum in the primary case.
While Hogan is of the view that the appeal won’t significantly impact XRP’s security classification, Tan suggests that the SEC’s underlying objective remains focused on overturning the earlier July decision by Judge Torres, which affirmed that XRP is not a security under certain circumstances.
Tan reveals that the SEC is drawing from the Terraform Labs case to bolster its argument against Judge Torres in the XRP case.
The SEC contends that a higher court should resolve discrepancies between different rulings.
Nonetheless, Tan asserts that the SEC should have provided clearer regulatory guidance prior to resorting to legal action.
He advocates for the normal progression of the court process to gain clarity on these matters.
Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, has encouraged anticipation, stating that Ripple will file its response with the court in the upcoming week.
This development underscores the ongoing dynamism in the legal landscape surrounding cryptocurrency classification and regulation.
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