The Securities and Exchange Commission (SEC) has appealed Ripple Labs’ blocking of its appeal of a judge’s decision to partially invalidate XRP as a security.
In July 2023, the Southern District of New York court concluded that programmatic sales and other token distributions do not constitute the offer and implementation of investment contracts. The SEC subsequently filed an appeal.
In the motion, the department said the judge’s summary judgment raises “precisely the kinds of tangled legal issues” that require interlocutory – or preliminary – review by a federal appeals court. This stems from a law that allows certain decisions to be appealed before the case is completed, according to the document.
According to the SEC, the proposed settlement option will speed up the completion of the process.
Previously, Ripple Labs requested that the SEC’s motion for an interlocutory appeal be canceled because it saw no legal basis for challenging the decision.
According to Ripple lawyers, an appeal will only delay the process and will not contribute to a final verdict.
Recall that the SEC and Ripple have been involved in a legal battle since 2020. The commission accused the company of unregistered sales of securities in the form of XRP worth $1.3 billion. CEO Brad Garlinghouse and co-founder Chris Larsen were also defendants in the lawsuit.
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