The U.S. Securities and Exchange Commission (SEC) filed an interim appeal against Ripple on August 18 as part of its ongoing case against the company.
Judge Analisa Torres in the Southern District of New York has previously ruled on Ripple’s programmatic exchange sales of XRP and distributions of XRP as payment for services. Those rulings basically said those offerings were not securities.
While the SEC plans to appeal these results, it does not intend to appeal any individual ruling in its own favor. That ruling determined that Ripple’s institutional XRP sales passed the Howey test, which is used to determine whether an offering is an investment contract. The SEC said the court properly established this fact in its latest filing.
The SEC has previously laid the groundwork to appeal the two results that were not in its favor on Aug. 9. Ripple tried to prevent the regulator from appealing on Aug. 16, but was unsuccessful, as the SEC received court approval to file the current motion on Aug. 17.
While the SEC’s latest motion only asks the court to certify its interim appeal and suspend other proceedings, previous timelines do not indicate that the SEC will immediately file a new application for its appeal. Instead, Ripple and other defendants must file their opposition papers by Sept. 1, while the SEC may file a response by Sept. 8.
Appeal focuses on case differences
The SEC contends that the two relevant rulings are subject to immediate appeal for several reasons, but primarily because they are controlling questions of law with grounds for substantial disagreement. In particular, the SEC drew attention to the fact that another court in the same district hearing its case against Terraform Labs came to a different conclusion on similar cases.
The SEC also argued that an immediate appeal will help the Ripple case reach a final conclusion, noting that the court will need to spend time determining remedies for Ripple through discovery and legal briefing. It also noted that Ripple is considering its appeal, implying it could further prolong the case.
The regulator additionally said any appeal should be considered immediately as the court’s decision has implications for other pending SEC cases.
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