In a turn of events that may prove to be a letdown for XRP enthusiasts, a district court judge in New York has approved the SEC’s Appeal Bid in its lawsuit against Ripple Labs. This comes after Ripple’s partial triumph in the case in July.
A Brief Recap of Ripple’s Legal Battle
The legal tussle between Ripple and the Securities and Exchange Commission (SEC) has been in motion since December 2020. The U.S. securities watchdog initiated legal proceedings against Ripple and its leading executives, Brad Garlinghouse and Chris Larsen, alleging that they raised over $1.3 billion through the sale of XRP, which the SEC claims is an unregistered security.
In July, the U.S. District Court of the Southern District of New York ruled that Ripple’s institutional sales of the XRP token violated federal securities laws, but sales to investors via exchanges were not investment contracts. This verdict stirred a positive trend for XRP and other cryptocurrencies accused of being securities by the SEC.
SEC’s Appeal Bid Granted
Fast forward to now, Judge Analisa Torres has given the SEC permission to file an interlocutory appeal in the ongoing dispute with Ripple, according to a court document filed recently. The SEC has until August 18, 2023, to file its motion, while Ripple has until September 1, 2023, to file their opposition to the appeal.
An interlocutory appeal is a scenario where a trial court’s ruling is appealed while other aspects of the case are still underway. The federal judge’s decision now allows the SEC to construct and present a case to the U.S. Court of Appeals for the Second Circuit.
What’s Next for Ripple and XRP?
This development, however, does not imply that the SEC can immediately appeal the XRP ruling. The court has only granted leave to file a motion for leave to appeal. The SEC will still require permission from the Second Circuit Court of Appeals to file the actual appeal of the ruling. If Judge Torres does approve the SEC’s motion, the SEC will face another significant challenge — securing the Second Circuit’s approval.
Therefore, XRP enthusiasts anticipating a significant value surge may have to hold their breath a bit longer. The project’s future could be under threat in light of the SEC’s appeal efforts.
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