The fascinating legal tussle between the Securities and Exchange Commission (SEC) and San Francisco-based blockchain juggernaut Ripple has taken a new turn.
This comes after the SEC submitted a letter detailing its reasons for a motion to file an interlocutory appeal concerning the "programmatic" offers and sales of XRP on trading platforms as well as Ripple's "other distributions."
The motion is in response to Judge Torres' earlier ruling that some XRP transactions and distributions are not securities under the Howey Test, which establishes what qualifies as an investment contract.
Legal analysts, including Ji Kim, have weighed in on this development. Kim reasserted his belief that Judge Torres had made the right decision. Despite the SEC's recent actions, Kim is optimistic about clarity in the digital asset space and believes that even if the case reaches the Supreme Court, it would further guide the judicial system to a proper conclusion.
On the other hand, Scott Chamberlain believes that the SEC's appeal request is due to its disagreement with the application of the Howey Test on the given facts, rather than any legal overhaul by Judge Torres.
Ripple's lead lawyer responds
Stuart Alderoty, Ripple's lead counsel, also responded on social media to the SEC's move. He highlighted that the SEC does not currently possess the "right" to appeal. The regulatory body is merely seeking permission for an "interlocutory" appeal. Ripple, in turn, will present its counter-response to the court in the forthcoming week.
Hints of the SEC's possible appeal were already in the air before the formal announcement. At a luncheon hosted by the Press Club DC, SEC Chair Gary Gensler expressed his ongoing examination of the Ripple case, hinting at a potential appeal.
Former SEC official, John Reed Stark, supported Gensler's perspective, opining that the Ripple decision rests on "shaky ground" while correctly predicting that the appeal would happen.
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Dan Burgin