The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs continues to evolve. Recent court records reveal that the SEC is taking steps to appeal Judge Analisa Torres’ final decision.
This move comes after Judge Torres’ summary judgment was granted to Ripple Labs on July 13, 2023, leading the SEC to express its intent to appeal the decision under specific legal provisions.
The SEC’s response to the summary judgment in the SEC vs. Ripple case has taken the form of an appeal. In an effort to challenge Judge Torres’ decision, the SEC has submitted a letter of intent to appeal.
This procedural step is in accordance with 28 USC § 1292(b), which allows parties to appeal interlocutory orders that involve controlling questions of law.
The SEC’s appeal centers around two significant adverse liability determinations made by the court in its July 13, 2023 decision.
These determinations relate to Ripple’s “Scheduled” offerings and sales, as well as “Other Distributions” in exchange for non-monetary considerations.
The SEC contests these conclusions, arguing that they were incorrectly treated as non-securities offerings in the context of the lawsuit.
The SEC asserts that these proceedings were erroneously deemed similar to the landmark SEC v. WJ Howey Co. case, where the offer or sale of securities was not considered relevant.
However, the SEC contends that the circumstances in the Ripple case warrant a different interpretation. By pursuing an appeal, the SEC aims to address this discrepancy and clarify the legal standards applicable to Ripple’s offerings and sales.
The SEC’s decision to file a provisional appeal is grounded in its desire to expedite the resolution phase and potentially avoid the need for separate hearings.
The appeal process could offer clarity on the legal considerations surrounding Ripple’s actions and contribute to a more efficient resolution of the case.
