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- The U.S. District Court Judge allows the SEC to file a motion appealing her ruling on Ripple’s XRP transactions.
- Despite the uncertain legal future, XRP’s price drops significantly, indicating market jitters.
Sourced from an intriguing update, the blockchain space is buzzing with the latest developments between Ripple and the SEC we reported. The U.S. District Court for the Southern District of New York’s Judge Analisa Torres has granted the SEC’s request to argue for its right to appeal her ruling. This decision, as CoinDesk recently pointed out, could mean that XRP transactions through exchanges did not breach securities regulations.
The Timeline of Events
The legal rollercoaster began when the SEC announced its intention to appeal, a move they hinted at earlier in July. Following the permission granted by Judge Torres, the SEC has been given a deadline until Friday to file the motion for this appeal. Ripple will then have until September 1 to respond, with the SEC given a reply window until September 8.
Bill Hughes, ConsenSys Senior Counsel, emphasized the challenging road the SEC faces. He expressed doubt on whether the court would be swayed by the SEC’s inconsistent arguments. Additionally, even if Judge Torres approves their motion, the SEC would then face the uphill task of gaining the Second Circuit’s green light for the appeal.
Because this isn't very clear, the court has not granted leave to appeal – meaning SEC can appeal now.
It granted leave to file a motion for leave to appeal. The court just decided "ya we can deal with this issue".
So, the issue itself – whether an appeal will go forward now -… https://t.co/vBbgr4CaYK
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) August 17, 2023
On the operational side, Dave Rodman, from the Rodman Law Group, stated that while the appeal process continues, the rest of the case will not be halted. However, an approval from both Judge Torres and the Second Circuit could potentially freeze all proceedings.
Market Response and Ripple’s Stand
While the legal intricacies unravel, the price of XRP has experienced a dip. Within 24 hours of the announcement, CNF reported a decline of approximately 4%. Ripple’s Chief Legal Officer, Stuart Alderoty, had previously mentioned the company’s disagreement with the SEC’s request, asserting the absence of any extraordinary circumstances to divert from the standard appeal process.
Legal Perspective on the Appeal Decision
There’s a distinction to be made between granting a motion for appeal and allowing an appeal itself. The present situation merely indicates the court’s willingness to entertain the motion. This ongoing XRP vs. SEC lawsuit has observed Judge Torres giving the SEC an opportunity to file an interlocutory appeal over a ruling that states XRP sales on secondary exchanges aren’t investment contracts.
In the midst of these developments, some in the pro-crypto legal community view this not as a victory for the SEC but as a means for Judge Torres to elucidate her stance on the law. Irrespective of the SEC’s motives for the appeal, legal experts stand by the ruling that XRP trading on exchanges isn’t security, providing temporary relief to platforms like Coinbase.
