The Securities and Exchange Commission (SEC) said on Wednesday that intends to challenge the setback in the ongoing legal battle against Ripple Labs. The agency disclosed its intention to seek an interlocutory appeal, notifying the Southern District of New York court of its decision, media reports said.
In correspondence addressed to Judge Analisa Torres, the SEC articulated, “Interlocutory review is warranted here… These two issues involve controlling questions of law on which there is substantial ground for differences of opinion, as reflected by an intra-district split that has already developed.”
The SEC referenced a recent legal case involving Terraform Labs, wherein a judge diverged from Judge Torres’ approach. When questioned about potential influence, an SEC representative declined to comment.
In the preceding month, Judge Torres ruled that some of Ripple’s XRP sales, labeled as programmatic, did not transgress securities laws due to the implementation of a blind bid process. Conversely, she determined that direct sales of the token to institutional investors qualified as securities.
The SEC aims to target the part of the ruling pertaining to programmatic sales and “other distributions,” which encompassed exchanges of XRP for goods and services. An SEC spokesperson conveyed this information during a media briefing.
The regulatory body also underscored in its motion that an interlocutory review would streamline the litigation’s resolution, eliminating the potential for dual remedies phases and trials.
The SEC’s pursuit of an appeal necessitates endorsement from the United States District Court Southern District of New York, followed by approval from the court of appeals. If both clearances are granted, permission from the Second Circuit is essential for initiating the interlocutory appeal.
