The U.S. Securities and Exchange Commission (SEC) has asked for permission to appeal a federal judge’s ruling that XRP sales through exchanges did not violate securities law. Judge Analisa Torres, of the U.S. District Court for the Southern District of New York, was asked to certify for an interlocutory appeal (meaning an appeal filed before the overall case is concluded). The SEC argued that retail investors purchasing the asset on an exchange would not have the same expectations as an institutional investor purchasing XRP directly from Ripple.
The rulings that the SEC seeks to appeal were legal determinations about the existence of investment contracts based on undisputed facts, the filing said. The ruling could impact other SEC cases, such as its suits against Coinbase and Dragonchain, as well as other legal matters like bankruptcies.
The SEC noted that its argument focused on the sales of XRP, rather than the asset itself. The SEC did not argue here or in Terraform that the asset underlying those investment contracts was necessarily a security, the filing said. Ripple has until Sept. 1, 2023 to file a response to the SEC’s motion.
Should the SEC win Judge Torres’ approval for interlocutory appeal, it will need to petition the Second Circuit Court of Appeals to take up the case.