by Lawyer Oscar Franklin Tan believes that if the appeal is allowed, whoever wins will build momentum in the main case.
As the United States Securities and Exchange Commission (SEC) seeks an
interlocutory appeal in its case against Ripple Labs, lawyers working in the
crypto space expressed confidence in Ripple’s case, with some underscoring that the XRP XRP
$0.63
token is not a security.
On Aug. 9, the SEC sent a letter to Judge Analisa Torres stating that it was
moving to appeal the court decision, which it says warrants a fresh look by an appellate court.
The SEC asked the judge to put the case on hold while the appeal is in progress.
The SEC’s move to appeal sparked questions among community members, with some thinking
that the SEC’s move to appeal is a move to challenge the “non-security” status of XRP. However,
crypto lawyers assured the community that this is not the case.
According to crypto lawyer Jeremy Hogan, the two issues are separate.
Hogan explained that if the SEC wins the appeal on the sales, Ripple would not be
able to facilitate sales using exchanges. Despite this, the lawyer believes
that exchanges could keep XRP listed as long as the sales are not made by Ripple.
Cointelegraph reached out to crypto lawyer Oscar Franklin Tan, chief legal officer of
the nonfungible token (NFT) platform Enjin, to break down some of the intricacies surrounding the SEC’s move.
According to Tan, appeals usually take place once the case is finished. However,
the SEC’s appeal is interlocutory, meaning it wants to appeal even though the case is unfinished.
When asked how this appeal could potentially influence the course of the case,
Tan told Cointelegraph that it’s all about the momentum. He explained:
“The SEC is asking to pause the XRP case while the interlocutory appeal goes on.
If the appeal is allowed, whoever wins the appeal builds momentum in the main case.”
While Hogan believes that the appeal will not affect XRP’s security status,
Tan believes that this is still what the SEC is after. He thinks the SEC is still looking
to overturn the July decision by Torres that XRP is not a security in certain instances.
Tan said that, at the moment, the SEC is using the conclusion in the Terraform Labs case against
the judge in the XRP case. The crypto lawyer said that the SEC argues that a higher court
should “break the tie” among different conclusions.
However, Tan believes the SEC should let the court process proceed normally. He explained:
“What the SEC should have done is to provide clearer guidance before
taking anyone to court. Since Ripple and other parties decided to take the
SEC to court to get this guidance, the SEC should let the court process proceed normally.”
Meanwhile, Ripple’s chief legal officer Stuart Alderoty told the community to
“stay tuned,” noting that Ripple will file its response with the court next week.
