The SEC responded by maintaining its request for an interlocutory appeal of the court decision rendered in July. The regulator accuses Ripple of delaying the resolution of the case. The outcome of this dispute could not only shape the regulation of cryptos, but also influence their treatment in financial markets.
The SEC maintains its position to make an interlocutory appeal
The SEC responded strongly against Ripple. Regulator disputes crypto firm’s request to prevent it from appealing of part of a court decision in July. According to the SEC, Ripple would seek to delay the resolution of the case, which would allow it to continue to freely sell its cryptocurrency XRP on public markets without the disclosures required by registration.
In his response at the request of Ripple, Gary Gensler’s agency argued his interlocutory appeal would not prolong the process. On the contrary, it would allow for a more efficient resolution of the case.
The SEC is indeed seeking to re-appeal a previous decision. In July, Judge Analisa Torres ruled that Ripple violated securities laws by selling XRP to institutional investors, but not individual investors. However, this decision was challenged by other judges, including Judge Jed Rakoff.
Did Ripple violate these laws by making XRP cryptos available to institutional investors, by placing them on crypto exchanges? At any rate, the SEC argued Friday that this is a matter that requires appellate court intervention.
Crypto company Ripple resists
For its part, Ripple opposes this decision of the regulator arguing that the court’s decision does not raise a proper question of law for interlocutory appeal.
He argued that if the SEC were granted leave to appeal, it could also consider appealing the court order regarding institutional sales of XRP.
The crypto company’s lawyers said last week: “This counter-appeal, too, will require a full review of the case, not just the parts the SEC wants to highlight.”
An important case for the cryptosphere
This legal battle has major repercussions on the entire crypto market. Indeed, it could define future regulation for digital assets. The court’s final decision will impact how cryptos are treated in financial markets. This thus makes this case of paramount importance for the entire cryptosphere. To be continued…
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