The US SEC has taken a significant step by appealing Judge Analisa Torres’ final decision in the SEC vs. Ripple case.
This move has the potential to impact the ongoing legal battle between the regulatory body and Ripple Labs. Let’s delve into the details of this appeal and its implications for the crypto industry.
According to court records, the SEC has formally expressed its intent to appeal Judge Torres’ summary judgment, a pivotal decision that took place on July 13, 2023.
In a letter submitted to Judge Torres, the SEC revealed its plans to initiate an appeal under the legal provision 28 USC § 1292(b).
This decision stems from two adverse liability determinations made in the aforementioned judgment.
The summary judgment handed down by Judge Torres favored Ripple Labs, the defendant in the case. The focus of the ruling revolved around allegations of unregistered securities sales.
However, the SEC has raised objections to the court’s conclusions, particularly concerning Ripple’s “Scheduled” offerings, sales, and “Other Distributions” involving non-monetary considerations.
A significant point of contention in this appeal is the SEC’s contention that the proceedings should be framed within the context of the landmark case SEC v. WJ Howey Co.
The SEC asserts that the transactions in question were not tantamount to the offer or sale of securities, a position that contrasts with the court’s decision.
The SEC’s appeal is not merely an assertion of its stance; rather, it underscores the importance of seeking a provisional appeal and clarification of legal standards.
This approach is envisioned to streamline the resolution phase of the case, potentially circumventing the need for separate hearings.
Furthermore, the SEC expresses concerns about the case’s potential to encounter delays spanning years if an appeal is not pursued.
