In the ongoing legal saga surrounding Ripple and its association with XRP, the US Securities and Exchange Commission (SEC) is reportedly pushing for an intervention by the appeals court regarding Ripple’s alleged violation of securities law. Their stance sharply contrasts with Ripple’s contention that such intervention isn’t necessary.
The point of contention arises from XRP’s availability to retail investors via crypto exchanges. While Ripple attempted to make its case last week by stating the SEC’s argument wasn’t strong enough for an appeal, the SEC stood its ground, upholding the relevancy and significance of the issues in the industry as whole.
This development follows Judge Analisa Torres’ ruling in the US District Court for the Southern District of New York. She recently permitted the SEC to present its case, extending the deadline until September 1st for Ripple to respond to the opposition.
July’s ruling saw Ripple on the receiving end of a judgment for violating federal securities law in its sale of XRP to institutional investors. However, an exception was made for retail investors. This intricacy of the ruling wasn’t without contention, though. Judge Jed Rakoff, from the same court, disagreed with Torres’ decision when faced with a similar case, also initiated by the SEC.
The ongoing disagreement about the application of Howey law to ‘blind’ trading platform-based transactions was highlighted by the SEC in its filings. They made their plea to allow the appeal, also known as an interlocutory appeal which could essentially fast-track the arrival of certain legal decisions without waiting for the main case to conclude.
If Torres indeed grants the SEC’s motion, the commission will need to take its case to the Second Circuit Court of Appeals. The SEC believes that settling these legal disputes at the appellate level at this juncture may accelerate the case’s resolution in the long term—a welcomed speed for both, the regulator and the industry.
Yet, while the saga unfolds, it’s clear the industry’s future hangs in balance as the outcomes could set critical precedence for other crypto companies, indicating how strongly regulations may shape the path of Blockchain’s future.
Source: Coindesk
