Ripple Labs has secured a partial victory in its legal battle against the US Securities and Exchange Commission (SEC), as U.S. District Judge Analisa Torres ruled that Ripple’s sale of XRP on public exchanges did not violate federal securities laws. This ruling marks a significant win for the crypto company, as it is the first time a crypto company has prevailed in a case filed by the SEC.
However, the SEC has decided to submit an interlocutory appeal, triggering discussions about the potential impact on the case. In a document shared by attorney James K. Filan, the SEC outlined its basis for filing a motion for leave to file an interlocutory appeal regarding “programmatic” offers and sales to XRP buyers and Ripple’s “other distributions.”
This development has sparked intense debate among individuals close to the case. Attorney Stuart Alderoty argues that the SEC does not have the right to appeal yet and is seeking permission to submit an interlocutory appeal. Meanwhile, lawyer Bill Morgan has noted a slight change in language in the settlement between the SEC and crypto exchange Bittrex. Instead of using the term “selling digital asset securities,” the SEC now refers to “crypto assets offered and sold as securities.”
Ripple’s Chief Technical Officer, David Schwartz, called the SEC’s statement incoherent. He argued that while orange groves were offered and sold as securities in the Howey case, real estate brokers who sell the same orange groves in simple asset sales would not be breaking any laws. Schwartz emphasized that selling something as a security does not necessarily make it one.
Related Post
Morgan also raised questions about the judge’s ruling that XRP ODL sales as institutional sales are securities. He argues that there is no promise of profit share, making it an error to classify it as an investment contract.
In support of Coinbase’s case against the SEC, a group of six securities law scholars filed an amicus brief. Morgan believes that this casts doubt on the correctness of Judge Torres’ decision against Ripple. If the securities law scholars are correct, Morgan argues that the judge got it wrong.
The ruling’s impact on XRP’s price has been a subject of interest. Currently trading at $0.626641, XRP has experienced a 12% decrease in the last 30 days. A successful appeal by the SEC could have a significant effect on the price. However, John Deaton of CryptoLaw believes that the SEC stands no chance against Ripple.
In conclusion, Ripple’s recent victory against the SEC has brought attention to the ongoing legal battle. The SEC’s decision to submit an interlocutory appeal has triggered discussions among legal experts and industry insiders. The language used by the SEC in its settlements with Bittrex and its appeal filings has also raised questions about the regulator’s approach to the case. As the case continues to unfold, it remains to be seen how it will ultimately impact Ripple and the broader crypto industry.
