The ongoing Ripple case is of utmost importance for cryptocurrency investors and will greatly impact the future of altcoins. Crypto companies that have followed a similar path as Ripple by issuing tokens are hoping for a shared victory in this precedent-setting decision. The summary judgment on July 13 was significant in this regard, but the SEC is appealing it.
Latest Development in the Ripple Case
The US Securities and Exchange Commission (SEC) has requested permission to file a temporary appeal in the case against Ripple Labs. The SEC argued that a temporary appeal is necessary instead of a traditional appeal because “immediate appeal of both decisions enhances the likelihood that this Court will be able to evaluate the remedial paths for all violations for which Defendants may ultimately be held responsible in a single proceeding.”
SEC lawyers claimed that the decisions could have a significant impact on “numerous ongoing cases.” The SEC currently has open cases related to securities laws against Coinbase and Binance.
“The Programmatic Sales decision is crucial for token issuances conducted through exchanges. Crypto exchanges conducted token sales without discrimination, and the SEC has ongoing cases regarding this matter.”
Today’s application argues that the Second Circuit Court of Appeals, which will oversee the temporary appeal if allowed to proceed, has previously handled similar appeals to “resolve important questions of securities law.”
At this stage, the validity of the SEC’s arguments will be examined. Ripple is expected to file an objection to the request for dismissal in the coming days. The SEC’s arguments do not appear to be strong at the moment. The denial of the appeal or Ripple’s potential victory in the appeal will have a positive impact on the price of XRP coin.
Ripple to File Objection
Ripple Labs has until September 1 to submit its objection documents. The application came after Judge Analisa Torres removed the obstacle to the SEC’s request for appeal on Thursday. However, Torres did not approve the appeal. Earlier this week, Ripple Labs and defendants Brad Garlinghouse and Chris Larsen opposed the SEC’s appeal.
The defendants’ lawyers argued that the SEC failed to fulfill its “burden” of presenting the necessary facts to support the expansion of the Howey test to cover all distributions of the digital asset XRP.
