Despite Ripple’s opposition, the US District Court of New York has approved the SEC’s request for an interlocutory appeal in the ongoing Ripple vs SEC case. This comes after Judge Analisa Torres ruled that secondary XRP sales do not fall under investment contracts, a decision that was seen as a win for Ripple and caused XRP’s price to surge by nearly 100 percent.
However, the SEC was not satisfied with this ruling and formally signaled its intention to appeal. An interlocutory appeal is a type of appeal that arises when a ruling made by a trial court is contested while other aspects of the case are ongoing. These appeals are usually allowed only in exceptional or specific situations.
Ripple opposed the SEC’s move, arguing that there are no extraordinary circumstances warranting a deviation from the rule that all issues must be resolved before an appeal can be pursued. Despite Ripple’s objection, the court approved the SEC’s petition to submit a motion for an interlocutory appeal. It’s important to note that this step only permits the SEC to seek an interlocutory appeal, and it does not guarantee automatic approval.
Amicus Curiae attorney John E Deaton commented on the SEC’s filing, stating that the 75,000 XRP holders who supported the defense played a major role in the SEC conceding this issue. He also highlighted the significance of the judge explicitly stating that the XRP token itself is not a security, which was the first section in their argument in the defense brief.
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Now, investors are eagerly awaiting Ripple’s response to the SEC motion, which is expected to be submitted before September 1. However, the final court verdict will not be reached until the SEC responds to any opposition from Ripple by September 8.
Although Judge Torres quickly ruled on the SEC’s motion for an interlocutory appeal, the decision on this matter may take more time. John Deaton believes that Judge Torres will take this opportunity to provide a more comprehensive explanation for her decision and make it more resistant to appeal. He also expects her to address the references made by Judge Rakoff to her ruling, as they are crucial in the case.
As a result of these developments and the SEC’s filing of the interlocutory appeal, Ripple’s native cryptocurrency, XRP, has experienced a significant decline in price, dropping below $0.50. This brings the price back to its pre-court-ruling levels.
It should be noted that the decline in XRP’s price is not directly caused by the acceptance of the appeal, but rather by market reaction to the ongoing legal battle between Ripple and the SEC.
In summary, the Ripple vs SEC case continues to evolve with the approval of the SEC’s request for an interlocutory appeal. While Ripple opposes this move, investors eagerly await Ripple’s response to the SEC motion. The final court verdict is expected to be reached after the SEC responds to any opposition from Ripple. The decline in XRP’s price is not directly linked to the acceptance of the appeal, but rather reflects market sentiment surrounding the case.
