The Securities and Exchange Commission (SEC) plans to file an “interlocutory appeal” on a recent court decision to the judge’s ruling on Ripple’s programmatic sales of XRP, the regulator said through a court filing on August 9.
The letter says, “Interlocutory review is warranted here. These two issues involve controlling questions of law on which there is substantial ground for differences of opinion, as reflected by an intra-district split that has already developed.”
The SEC filed an appeal to the District Judge to review her recent decision on July 13 that XRP is not a security when sold to the general public. The approval of an interlocutory appeal can help to stop the SEC and government from needing two trials.
“Specifically, the SEC seeks to certify the Court’s holding that Defendants’ ‘Programmatic’ offers and sales to XRP buyers over crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services did not involve the offer or sale of securities under [the Howey test],” the SEC filing said.
Last month, US District Judge Analisa Torres said that RIpple’s direct sales to institutional investors violated securities law, while its programmatic sales to retail investors through exchanges did not.
An appeal’s outcome had “particular consequence” for its ability to enforce securities laws and for a “large number” of pending Litigations, also mentioned in the letter.
The SEC argues that it would be quicker to solve the legal issues now rather than after a final decision in the trial court because there are chances that an appeal can be postponed.
The SEC suggested in a letter that Ripple must respond by August 16, 2023, and send an opening brief laying out the appeal on August 18. If the judge signs off the filing, Ripple will have two weeks to respond, and after the SEC will have another week to reply to Ripple.
Also Read: Chamber of Digital Commerce Applauds Ripple SEC Ruling
