It appears that the bitter Securities and Exchange Commission (SEC) vs. Ripple legal drama still has at least one chapter left to go. On Thursday, a judge gave the SEC the go-ahead to file an appeal.
Back on July 13, Judge Analisa Torres of the Southern District of New York ruled that XRP was not a security when sold to the public on exchanges. XRP is the flagship cryptocurrency of Ripple, used for facilitating fast and cost-efficient cross-border payments.
SEC vs. Ripple May Yet Have More Road to Traverse
However, the judge ruled that it did become a security when sold to institutional investors. The crypto world considered this a big win, and a judgment that may prove fortuitous for other cryptocurrencies and businesses facing similar legal battles.
However, on Thursday, August 17, the same judge granted the SEC’s request to file a motion for leave to file an interlocutory appeal. Although, this is no guarantee. The Second Circuit would still have to review the application for an appeal.
According to court documents, the SEC should file its motion by August 18. All defendants must file their opposition papers by September 1, and the SEC should file its reply by September 8.
It is very likely the SEC will take this case all the way, having already signaled its intent to file an appeal.
The SEC vs. Ripple saga kicked off in December 2020, when the regulator claimed XRP was an unregistered security. Judge Torres’ ruling was a severe blow to the agency, which has asserted jurisdiction over most crypto assets based on the assumption they are securities.
Many hailed the ruling last month as a game-changing win for crypocurrency. But if the Second Court gives its approval to the appeal, the SEC vs. Ripple saga may yet drag on for many months more.
Following the news, XRP dropped by approximately 3.6% within 60 minutes of the announcement.
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