The US Securities and Exchange Commission (SEC) has received authorization to move forward with its request for permission to appeal in the legal dispute involving Ripple Labs’ XRP cryptocurrency.
Judge Analisa Torres, in an order dated August 17, instructed the SEC to submit its motion by August 18, while the defendants have until September 1 to provide their response.
On August 9, the SEC communicated with Judge Torres, outlining several reasons for considering an appeal against the verdict that determined XRP’s sale to retail investors via exchanges did not qualify as a security.
Noteworthy in their argument, the SEC pointed out potential hindrances to fulfilling enforcement obligations and addressing multiple legal cases resulting from the ruling.
Ripple Labs, on the other hand, has expressed its opposition to the possibility of an appeal. Through legal representatives, the company recently urged Judge Torres to dismiss the SEC’s motion until a comprehensive final judgment is reached.
The ongoing disagreement revolves around whether the XRP cryptocurrency should be considered a security, with the SEC aiming to appeal against the present verdict while Ripple Labs stands firm against such action.
The securities agency has lately come under fire from Ripple’s chief legal officer, Stuart Alderoty, who wrote on Twitter that “The SEC does not have the “right” to appeal just yet, which is why they are asking permission to file an “interlocutory” appeal.”
Take a look:
The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned. https://t.co/zCeVZhYfxc
— Stuart Alderoty (@s_alderoty) August 9, 2023
The recent court order by Judge Torress doesn’t guarantee a win for the SEC. They still need to file an appeal with the Second Circuit Court of Appeals for approval. If approved, the ongoing litigation might pause until the appeal is settled.