In a recent update on X (formerly Twitter), Ripple Labs CTO David Schwartz drew attention to the latest developments involving the United States Securities and Exchange Commission (SEC) appeal.
according to Schwartz said the SEC is seeking an appeal at this particular juncture, based on its interpretation of the legal case as it remains open. This understanding gives the parties the privilege of appealing after the case is finalized. This procedural strategy is designed to increase the efficiency of litigation and avoid the constant disruption of the main case due to multiple appeals.
The U.S. Securities and Exchange Commission (SEC) has filed an appeal following Judge Analisa Torres’ ruling on July 13 that XRP (XRP) is not a security when sold on digital asset exchanges. Although motivated by a favorable Ripple ruling, the SEC’s move focuses on unforeseen developments in the legal proceedings.
Yes. A party who loses any claim or issue in litigation has the right to appeal any adverse decision at the conclusion of litigation. The SEC requests permission to appeal this appeal because neither party’s litigation is complete.
You can see why there is such a rule…
— David “Joel Katz” Schwartz (@JoelKatz) August 18, 2023
Schwartz emphasized that joining the appeals is critical to improving the situation, while individual appeals could make the legal process longer.
However, the executive clarified the rules for special circumstances. In this case, the SEC argued, the unique circumstances justified a different approach. It suggested stopping the process until the appeal was resolved, but Ripple disagreed.
Ripple believes that even if the SEC could appeal, the main lawsuit should continue during the appeal process. That fits with the idea of letting the trial go ahead and scrutinizing the appeal after everything else is done.
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Schwartz provided more information as rumors in the Bitcoin community suggested that the SEC may want to appeal Torres’ decision to a higher court.
The outcome of the legal disagreement between Ripple Labs and the SEC could be influenced by the court’s choice of whether to accept the appeal request.
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