SEC urges court to grant Ripple Labs appeal citing ‘knotty legal problems’
The U.S.Securities and Exchange Commission has submitted a filing urging the court to grant its motion to appeal a ruling from the Ripple Labs lawsuit that deemed that XRP was not a security when sold to retail investors.
The agency argued that there are “knotty legal problems” surrounding the court's application of the law — specifically the Howey Test — that warrant a review.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The SEC has filed its Reply Memorandum in Further Support of its Motion to Certify Interlocutory Appeal.https://t.co/KE1MzYKbVD
As per a Sept. 8 filing, the SEC called for the U.S. District Court for the Southern District of New York to grant its motion for interlocutory appeal, and “stay further proceedings until the resolution of that appeal.”
Judge Analisa Torres ruled in July that XRP is generally not a security under SEC guidelines, particularly when distributed via programmatic sales (e.g. sold to retail via exchanges).
In the latest filing, the SEC argued that the rulings on programmatic sales and other distributions present “legal questions” that are significant enough for the agency’s interlocutory appeal to be approved by the court.
The SEC suggested that this is down to there being a legal gray area as to whether certain crypto assets fall under the classification of investment contracts via the Howey Test or not, as it highlighted court proceedings from other cases.
“At least two opinions within this District reach contradictory legal conclusions on these issues and many other courts are considering whether similar offers and sales [...] satisfy Howey,” the SEC stated, adding that:
These sentiments however, seemingly contradict previous statements from the agency and its chairman Gary
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