The United States Securities and Exchange Commission (SEC) has filed an appeal in the case against Ripple Labs, expressing confidence in the Ripple case and clarifying that XRP is not a security.
SEC Requests Suspension of the Case
On August 9th, the SEC sent a letter to Judge Analisa Torres stating that it would appeal the court’s decision to review the appeal process. The SEC requested the suspension of the case while the appeal process continues. Some community members speculate that the SEC’s appeal is a move to challenge XRP’s “non-security” status, but crypto lawyers have assured the community that this is not the case.
According to crypto lawyer Jeremy Hogan, winning the SEC’s appeal regarding sales would prevent Ripple from facilitating sales through exchanges. However, the lawyer believes that exchanges can still list XRP as long as the sales are not made by Ripple.
On the other hand, lawyer Oscar Franklin Tan believes that appeals are usually made after the conclusion of a case. However, the SEC wants to appeal even though the case is still ongoing.
“While the temporary appeal process continues, the SEC wants to pause the XRP case. If the appeal is allowed, whoever wins the appeal will gain momentum in the main case.”
Hogan believes that the appeal will not affect XRP’s security status, while Tan believes that the SEC is still pursuing this goal. Tan thinks that the SEC wants to overturn Judge Torres’ July decision that XRP is not a security in certain circumstances.
Ripple Will Respond Next Week
Tan stated that the SEC is using the outcome of the Terraform Labs case in its argument against the judge in the Ripple case. The crypto lawyer argued that the SEC needs to “disconnect” between different outcomes by a higher court. However, Tan believes that the SEC should allow the court process to proceed normally.
“What the SEC needs to do is provide clearer guidance before taking anyone to court. Since Ripple and other parties have decided to take the SEC to court to obtain this guidance, the SEC should allow the court process to proceed normally.”
Meanwhile, Ripple’s Chief Legal Officer Stuart Alderoty said, “Keep watching us,” and noted that Ripple will present its response to the court next week.
