Logll Tech News โ In a compelling turn of events, the United States Securities and Exchange Commission (SEC) is flexing its legal muscles once again, seeking to challenge a pivotal court ruling from July involving fintech giant Ripple Labs.
- The court had previously decreed that the sale of XRP, Ripple’s cryptocurrency, did not constitute a security when marketed to retail investors. However, the SEC, seemingly unyielding, has penned an authoritative missive to Judge Analisa Torres, the presiding adjudicator, asserting that her decision merits a reevaluation within the higher echelons of the judiciary.
SEC’s Gambit: A Quest for Reassessment ๐ฏ
The SEC’s strategic maneuver materialized in an eloquent letter addressed to Judge Torres, dated August 9th. Within this epistle, the SEC articulated its rationale for seeking a second opinion, positing that the implications of the court’s original decision could ripple across multiple pending cases. These cases, it posits, could potentially teeter on the precipice of transformation contingent upon the appellate court’s forthcoming ruling.
Ripple’s Ripple Effect on the Crypto Legal Landscape ๐
As the SEC prepares its arsenal for this legal tango, it finds itself ensnared in a broader skirmish with a cluster of cryptocurrency enterprises, including notable names like Binance and Coinbase. The focus of this clash revolves around allegations of securities transgressions that have ruffled the feathers of the crypto community.
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“Interlocutory Review” Plea: SEC’s Justification ๐
With a tone of gravitas, the SEC states that the call for an “interlocutory review” is not merely a legal formality but a necessity. It asserts that the crux of the matter hinges upon pivotal questions of law that are shrouded in nuance and ambiguity. The agency contends that these queries present an arena ripe for divergent interpretations, spotlighted by a schism within the legal landscape itself.
AND... the SEC continues making questionable decisions, requesting an interlocutory appeal.
— Jeremy Hogan (@attorneyjeremy1) August 9, 2023
Note that it is NOT appealing whether XRP itself is a security - just its losses on the programmatic and individual sales issues. https://t.co/GziVLp23mT
Quest for Certification: Ripple’s Inroads ๐ค๏ธ
The SEC’s battle cry is amplified by its pursuit of certification for the court’s determination regarding Ripple’s programmatic XRP offerings. It seeks validation that these offerings, along with individual sales executed on cryptocurrency exchanges, stand on the side of the regulatory divide, eschewing the label of securities. It’s an assertion punctuated by the SEC’s nod to the judge’s contrasting viewpoint, as exemplified in the litigation against Terraform Labs. The judge’s perspective therein diverges, suggesting that cryptocurrencies bought and sold on exchanges could conceivably don the mantle of securities.
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Ripple’s Victorious Echoes: A Prelude to Appeal ๐
Coincidentally or not, the SEC’s letter surfaces in the wake of a significant milestone for Ripple โ a triumph, albeit partial, over the agency. The focal point of this triumph resides in the realm of XRP’s securities status. Judge Torres cast her judicial gaze upon the XRP token and declared that, in its essence, it doesn’t wear the badge of security. However, her pronouncement carves out a niche of exceptionality, stipulating that under certain circumstantial scenarios, the sale of XRP tokens could indeed morph into securities. This transformation, she contends, is plausible when institutional investors are the recipients, yet loses its legitimacy when retail traders engage in transactions via exchanges.
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Sergio Richi
Editor, Logll Tech News