‘XRP is not a security. Period’ – Crypto Experts Weigh In on Ripple’s SEC Appeal
The recent decision by the United States Securities and Exchange Commission (SEC) to seek an interlocutory appeal in its case against Ripple Labs has sparked a debate in the crypto community. Many are questioning whether this move is an attempt by the SEC to challenge the “non-security” status of XRP. In response, crypto lawyers have come forward to express their confidence in Ripple’s case, emphasizing that XRP is not a security.
The Separation of Issues
Crypto lawyer Jeremy Hogan clarifies that the SEC’s appeal and the “non-security” status of XRP are two separate issues. He explains that even if the SEC wins the appeal on the sales, Ripple would still be unable to facilitate sales using exchanges. However, exchanges could continue to list XRP as long as the sales themselves are not made by Ripple.
Another crypto lawyer, Oscar Franklin Tan, Chief Legal Officer of the nonfungible token (NFT) platform Enjin, adds further insight into the intricacies of the SEC’s appeal. Typically, appeals occur after a case is completed, but the SEC’s appeal is considered interlocutory, as they want to appeal even though the case is still ongoing.
Tan explains that the impact of this appeal on the case depends heavily on momentum. He believes that if the appeal is allowed, the winner of the appeal will gain momentum in the main case. While Hogan is confident that the appeal will not affect XRP’s security status, Tan suggests that overturning the July decision by Judge Analisa Torres, which ruled that XRP is not a security in certain instances, may still be the SEC’s ultimate goal.
The SEC’s Misstep
Tan criticizes the SEC’s approach, suggesting that the agency should have provided clearer guidance before resorting to legal action. He believes that since Ripple and other parties went to court seeking guidance, the SEC should have allowed the normal court process to proceed without interference. Instead, the SEC is using the conclusion from the Terraform Labs case as ammunition against Judge Torres in the XRP case, arguing that a higher court should resolve the different conclusions reached. Tan stresses the importance of letting the court process unfold naturally.
Stuart Alderoty, Ripple’s Chief Legal Officer, has assured the community that Ripple will file its response with the court in the coming week. As the case continues to unfold, it remains to be seen how the appeal will ultimately impact the status of XRP and the broader crypto industry.
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