On August 18, in line with Judge Analisa Torres' permission, the SEC expectedly filed an interlocutory appeal in the case against Ripple. Here, we have highlighted some noteworthy points of this text.
Inside the SEC’s appeal
In general, the document is an expanded version of the text presented in the motion for appeal, incorporating four arguments and references to other similar cases. However, a couple of interesting points deserve to be mentioned separately:
- This appeal does not address whether the XRP token is a security or not.
"The SEC did not argue here or in Terraform that the asset underlying those investment contracts was necessarily a security (and 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)".
- The SEC underscores that clarifying the status of programmatic sales will set the stage for similar cases within comparable litigations.
"The programmatic sales ruling could have significant persuasive value in various pending SEC enforcement actions".
- The regulator believes that it is better to resolve this now through a single proceeding than delaying a possible appeal until the case is finally decided.
"The Court will be able to assess in one proceeding the remedies for all of the violations for which the defendants are ultimately held liable".
- Given the importance of this appeal, the SEC asks the court to suspend the proceedings in the main case until all interlocutory issues are resolved.
"The Court should also stay the remainder of these proceedings during the pendency of this motion and any forthcoming appeal".
Ripple Labs now has until September 1 to file its objections to the court.
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