SEC sends a preliminary request for an appeal against the pro-Ripple decision.
As expected, the SEC sent the preliminary request for an interlocutory appeal. Legal minutiae aside, this is the first step towards an appeal of Judge Analisa Torres’ decision in favor – at least in part – of Ripple and its top executives.
The government agency that deals with financial markets, SEC, is therefore developing the initial stages of its legal strategy, through which it would like to appeal decisions concerning the status of some sales of Ripple XRP, specifically those on the market carried out both by Ripple Labs and by Brad Garlinghouse, who is currently the CEO of the group.
The news was largely predictable, but it still caused some, albeit not so large, sales of $XRP in the market. Sales that have caused, in contrast with the rest of the market, falls on XRP. We talked about what happened previously and the possible implications both for Ripple and for the rest of the altcoin market in a recent issue of our Magazine – where you will find a clear account (even for those who don’t know US jurisprudential issues).
The first step for the SEC appeal against Ripple
The SEC announced late in the evening of August 9 that it had sent a letter requesting permission for what is called, in US law, an interlocutory appeal. This is a particular type of appeal that can be filed while the legal issue has not yet been filed with final judgments and one of the ways forward that is within the SEC’s capacity today.
But what is the agency that supervises the US markets asking for? He asks to review the decision of Judge Analisa Torres who for the moment has guaranteed Ripple the status of non-commodity, which has at least partially closed a legal case that has been dragging on since 2020 and which has caused significant economic damage to Ripple Labs.
Furthermore, Judge Analisa Torres’ decision is controversial, not only for the SEC, but also for judges of other circuits, which in judging similar cases have refused to consider the decisions of the New York judge.
A legally complex matter – adding to the lengthy nature of a case that will drag on until at least mid-2024, with a jury trial set for the second quarter of next year.
What changes now for Ripple?
In reality, the opinions are quite conflicting. Ripple expected the appeal request from the SEC and in all likelihood, she will not be found unprepared at least under the legal level. However, XRP cashed the decision in a negative way, losing a few percentage points compared to the price 24 hours earlier.
It now remains to be seen whether the request for an interlocutory appeal will be granted to the SEC (which for the moment appears to be taken for granted) and what the immediate legal consequences will be. For Ripple – in an otherwise positive summer – a period of certainly increased volatility is shaping up.