SEC has made a public declaration that XRP is not a security. It is important to note that court had approved the appeal by SEC recently to appeal the XRP ruling issued recently.
However, the regulatory agency has now decreed in its latest statement that XRP is not a security. This appeal is part of the motion initiated by SEC to repeal the verdict in the earlier XRP case.
SEC has maintained in its statement that it does not intend to appellate review of the public holdings that are related to underlying assets. At the same time, SEC has maintained that XRP tokens are nothing more than computer code with no inherent value.
The verdict issued by SEC has been endorsed and celebrated in the crypto community and among XRP investors. Attorney John Deaton has claimed that SEC’s decision was swayed by the 75K XRP investors.
SEC has filed an interlocutory appeal on this account at the Southern District Court of New York. The regulators have maintained that they have undertaken a pivotal step in the legal dispute against Ripple Labs.
It is worth noting that the presiding judge on the case, Analisa Torres greenlit the motion by SEC to leave for an interlocutory appeal. An interlocutory appeal takes place when a case ruling in trial court is appealed with other facets of the given case still pending.
SEC officials filed the motion directed towards the programmatic XRP sales and various types of distributions. The appeal was a reminder on the 13th July ruling earlier this year that XRP is not a security offering for its secondary market sales.
At the same time, courts maintained that programmatic sales of XRP and other types of distribution does not constitute as security sales. However, Ripple is due to submit a response to the motion submitted by SEC by September 1.
Ripple Lab Lawyers Bring Three Objections Against SEC’s Interlocutory Motion
As standard practice, Ripple lawyers have the option to file for an opposing motion against SEC request. To this effect, the defence has brought three main objections that they may present in the court.
The first one is that SEC does not invoke any legal violations that the court has to address. The second objection retains that the incorrect verdict appeal by SEC does not offer sufficient evidence to qualify for immediate termination of litigation process.
The third objection comes from Brad Garlinghouse who maintained that SEC appeal does not change the fact that XRP is not a security. He later added that SEC is likely to face a lengthy appeals process that could take years. The current price of XRP is around $0.52 which skyrocketed to $0.6 following the finalization of ruling in July.
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