David Schwartz, the Chief Technology Officer (CTO) at Ripple Labs, shed light on a crucial development in the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The SEC has officially sought an appeal, contending that the case has not concluded yet, according to Schwartz.
This strategic move by the SEC comes after Judge Analisa Torres ruled on July 13 that XRP does not qualify as a security when sold on digital asset exchanges. While the ruling was favorable to Ripple, the unforeseen twist in the proceedings prompted the SEC to submit an appeal.
In this regard, Schwartz emphasized the need to consolidate appeals in order to streamline the legal process, rather than prolonging it by pursuing separate appeals. This procedural tactic aims to enhance efficiency and eliminate disruptions caused by multiple appeals over minor decisions.
Yes. A party that loses on any claim or issue in their suit is entitled to appeal any adverse rulings at the conclusion of the suit. The SEC is asking for permission to appeal here because the suit is not complete yet for any party.
You can see why there would be a rule like…
— David "JoelKatz" Schwartz (@JoelKatz) August 18, 2023
However, a divergence in opinions arises due to a unique circumstance. The SEC argues that the exceptional situation justifies a temporary halt to the proceedings until the appeal is settled.
On the other hand, Ripple disagrees, advocating for the continuation of the main lawsuit while the appeal process unfolds. Ripple’s stance aligns with the notion of allowing the trial to proceed and thoroughly considering appeals once all other aspects of the case are resolved.
Schwartz felt compelled to address rumors circulating within the Bitcoin community, suggesting that the SEC might aim to appeal Judge Torres’s decision to higher courts. Providing additional information, Schwartz aimed to dispel any speculations and provide clarity on the matter.
Ultimately, the court’s decision on whether to accept the appeal request will play a significant role in shaping the outcome of this legal dispute between Ripple Labs and the SEC. The resolution of this complex case hinges on the court’s determination regarding the validity of the appeal.
The SEC Admits XRP Is Not A Security
The SEC, in its filing, stated that the interlocutory appeal is focused on Judge Torres’s ruling on Ripple’s programmatic sales of XRP and other distributions.
The agency emphatically stated in the motion that digital assets, including XRP, are inherently not securities, but what it is going out to challenge is how it was sold by Ripple, its major distributor.
The SEC noted:
“The SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value.
As expected, this admission has brought relief to the XRP camp. The recent stance of the SEC on XRP and some other digital assets corroborates with one of David Schwartz’s assertions in line with the ruling.
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