'XRP is not a security. Period' — crypto lawyers on Ripple’s case amid SEC appeal

As the United States Securities and Exchange Commission (SEC) seeks an interlocutory entreaty successful its lawsuit against Ripple Labs, lawyers moving successful the crypto abstraction expressed assurance successful Ripple and XRP’s case, with immoderate underscoring that the XRP (XRP) token is not a security. 

On Aug. 9, the SEC sent a missive to Judge Analisa Torres stating that it was moving to entreaty a tribunal decision and stated that the determination warrants a caller look by an appellate court. The committee asked the justice to enactment the lawsuit connected clasp portion the entreaty is successful progress.

The SEC's determination to entreaty sparked questions among immoderate assemblage members, with immoderate reasoning that the SEC’s determination to entreaty is simply a determination to challenge the “non-security” presumption of XRP. However, crypto lawyers assured the assemblage that this is not the case.

According to crypto lawyer Jeremy Hogan, the 2 issues are separate. Hogan explained that if the SEC wins the entreaty connected the sales, Ripple would not beryllium capable to facilitate income utilizing exchanges. Despite this, the lawyer believes that exchanges could support XRP listed arsenic agelong arsenic the income are not done by Ripple.

Lawyer Jeremy Hogan's thoughts connected the Ripple case. Source: Twitter

Amid the SEC’s caller move, Cointelegraph reached retired to crypto lawyer Oscar Franklin Tan, the main ineligible serviceman of the nonfungible token (NFT) level Enjin, to interruption down immoderate of the intricacies surrounding the SEC’s move. 

According to Tan, appeals usually instrumentality spot erstwhile the lawsuit is finished. However, successful this case, the SEC’s entreaty is interlocutory which simply means that they privation to entreaty adjacent though the lawsuit isn’t finished yet.

The SEC does not person the “right” to entreaty conscionable yet which is wherefore they are asking support to record an “interlocutory” appeal. Ripple volition record its effect with the Court adjacent week. Stay tuned. https://t.co/zCeVZhYfxc

— Stuart Alderoty (@s_alderoty) August 9, 2023

When asked however this entreaty could perchance power the people of the case, Tan told Cointelegraph that it’s each astir the momentum. He explained:

“The SEC is asking to intermission the XRP lawsuit portion the interlocutory entreaty goes on. If the entreaty is allowed, whoever wins the entreaty builds momentum successful the main case.”

While Hogan believes that the entreaty volition not impact XRP's presumption arsenic a non-security, Tan believes that this is inactive what the SEC is after. Tan believes that the SEC is inactive looking to overturn the determination that XRP is not a information backmost successful July.

Related: Ripple joins BIS cross-border payments task force

Tan besides explained that astatine the moment, the SEC is utilizing the conclusion successful the Terraform Labs case against the justice successful the XRP case. The crypto lawyer said that the SEC is arguing that a higher tribunal should "break the tie" among the antithetic conclusions. However, Tan believes that the SEC should fto the tribunal process proceed normally. He explained:

“What the SEC should person done is to supply clearer guidance earlier taking anyone to court. Since Ripple and different parties decided to instrumentality the SEC to tribunal to get this guidance, the SEC should fto the tribunal process proceed normally.” 

Meanwhile, Ripple’s main ineligible serviceman Stuart Alderoty told the assemblage to “stay tuned” and noted that Ripple volition record its effect with the tribunal adjacent week.

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