SEC’s Appeal Request in Ripple Case Echoes Terra Case

The Securities and Exchange Commission (SEC) and Ripple are still embroiled in a legal battle, and now the SEC is seeking an appeal against Judge Analisa Torres’ ruling. This ongoing drama takes an interesting turn as it involves another case with Terra and conflicting judgments from two different judges. Let’s take a closer look at the recent developments.

The SEC is looking to appeal Judge Torres’ ruling regarding Ripple’s programmatic sale of XRP and other distributions. The SEC claims that there are “controlling questions of law on which there is substantial ground for differences of opinion.” This appeal brings attention to two judges, Jed Rakoff and Analisa Torres. Judge Rakoff, who presided over the Terra case, disagrees with Judge Torres’ reasoning in the Ripple case. The main difference lies in Torres’ distinction between Ripple’s sales to institutional and retail investors.

Judge Torres ruled that Ripple’s sales to institutional investors should be considered securities, while programmatic sales and other distributions should not. She argued that institutional investors had different expectations of gains directly from Ripple, while retail buyers had different expectations. However, Judge Rakoff challenged this ruling by denying Terra and its founder Do Kwon’s motion to dismiss the SEC’s case against them, using Judge Torres’ ruling as a precedent. Rakoff firmly stated that the Howey test, a critical security test in the US, does not differentiate between buyers.

The plot thickens when the SEC uses Judge Rakoff’s rejection as leverage to request an interlocutory appeal in the Ripple case. This development was brought to light by Sherrie, an influential figure in the XRP community. The SEC believes that an interlocutory review would save time and money by avoiding two separate lawsuits over the same legal issues.

There are differing opinions on whether Judge Torres will grant the SEC’s request for an appeal. Legal expert Scott Chamberlain predicts that the request will be denied. However, the SEC is prepared for this outcome and has hinted at appealing the final judgment if the interlocutory appeal is denied. The SEC argues that an interlocutory review would be more efficient and cost-effective, avoiding the need for two separate lawsuits.

The legal battle between the SEC and Ripple continues to evolve, with the latest developments shining a spotlight on conflicting judgments and the potential for an appeal. As the drama unfolds, it remains to be seen how this legal tug of war will play out and what implications it will have for Ripple, XRP, and the broader cryptocurrency industry.