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Ripple’s legal battle with the US Securities and Exchange Commission remains a central topic of conversation within the community as it has recently progressed into a new stage.
Nonetheless, it is crucial to provide some clarifications regarding the latest updates in the lawsuit. Let’s explore further.
A Bit of Backstory
Last month, the presiding Judge, Analisa Torres, issued a significant ruling indicating that secondary sales of XRP do not qualify as investment contracts.
The market viewed this as a triumph for Ripple, resulting in XRP’s price surging by nearly 100% to a peak of around $0.90.
However, the cryptocurrency has since retraced nearly 50% of that gain and is currently trading at $0.50, following a decline of more than 15% in just the past 24 hours.
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That said, the SEC expressed dissatisfaction with the ruling. Last week, the Commission submitted an interlocutory brief, formalizing its plan to appeal the Judge’s decision. Ripple countered this yesterday, asserting that there are no extraordinary circumstances that warrant deviating from the principle requiring all matters to be settled prior to an appeal.
Court Greenlights SEC’s Request
Despite Ripple’s objections, the US District Court for the Southern District of New York has opted to approve the Commission’s request to file a motion for an interlocutory appeal.
This is where some individuals misunderstand the situation, believing that XRP’s decline is linked to this decision, presuming that an appeal has been granted.
This action simply permits the SEC to seek an interlocutory appeal – it does not automatically approve it.
This clarification was provided by James Filan – a defense attorney and former federal prosecutor.
Source: X
That said, the XRP price has significantly decreased today. The cryptocurrency fell by over 15%, following the downturn of the entire market.
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