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The Regulator Strikes Back: SEC Files to Appeal Ripple’s Partial Court Victory

This is What’s Holding XRP’s Price Back According to Former Lawyer

Despite a partial court victory earlier this summer, Ripple is still engaged in a battle with the SEC as the agency has formally requested the right to appeal the decision.

The SEC’s request comes after the deadline for Ripple to present its opposition passed on September 1.

  • In July, US Judge Analisa Torres ruled in favor of Ripple, stating that most of its XRP sales did not constitute an offer of unregistered securities for retail investors (not institutions).
  • In August, the SEC quickly responded and requested permission to appeal the decision, citing substantial grounds for difference of opinion on how securities laws apply to digital assets.
  • Ripple opposed the SEC’s request, arguing that there were no extraordinary circumstances justifying a departure from the rule requiring all issues to be resolved before an appeal.
  • The SEC disagreed with Ripple’s motion, stating that an interlocutory appeal would not prolong the process and that the agency has a vested interest in the efficient resolution of the litigation.

“The SEC, like the Court, has an institutional interest in the most efficient ultimate resolution of this litigation. Defendants’ interest, by contrast, is to delay an ultimate resolution so that they may continue freely selling XRP into public markets without the disclosures that come with registration, to the tune of over $3 billion net ODL sales since 2020 alone.” – reads the filing.

  • The SEC appealed against the rulings on two types of XRP sales – programmatic sales and “other distributions.” Programmatic sales refer to sales to retail investors, which the court ruled did not violate securities laws, while “other distributions” include offers and sales of XRP in exchange for goods and services.