After Losing In Court, US Securities Commission Wants To Thwart Ripple Labs Again

XRP, a crypto asset published by Ripple. (Photo; Doc. Cryptoast)

JAKARTA - The US Securities and Exchange Commission (SEC) has taken the latest steps by filing an appeal in a lawsuit involving Ripple Labs, the company behind the XRP crypto token. The SEC has argued that intermediate appeal is a necessary option in handling previous decisions related to Ripple Labs.

In documents submitted to the Second Circuit Court of Appeals, the SEC argues that interlocutory appeals will facilitate further review of the case. They cited the need for "an immediate appeal resolution of the two rulings" as an important reason for choosing an interlocutory appeal. This is expected to allow the court to provide a comprehensive solution to all violations that occur.

Lawyers representing the SEC argue that the outcome of this ruling will have a significant impact on the pending litigation. Several cases under scrutiny involve leading crypto asset trading platforms such as Coinbase and Binance. The SEC argues that the ruling in the Ripple Labs case has the potential to establish an important precedent in law enforcement of crypto assets in the future.

"Programd Sales Decisions can have significant persuasive value in pending SEC enforcement actions where issuers offer and sell crypto assets indiscriminately to public investors through crypto asset trading platforms, including pending cases in this district," the SEC said.

The appeal also reflects the SEC's efforts to reach a faster settlement in pending lawsuits. With the reversal of this ruling, the SEC hopes to accelerate the settlement of cases without having to involve repeated trial proceedings.

Judge Analysis Torres has given the SEC permission to appeal interlocutoryly after the previous ruling. The ruling has sparked controversy and dispute between the parties involved. Ripple Labs and the defendants, Brad Garlinghouse and Chris Larsen, have previously opposed the SEC's efforts to file interlocutory appeals.

Both sides filed their respective legal arguments. The defendants argue that the SEC has failed to prove that all XRP distributions are violations of securities law. They also voiced doubts about the SEC's motive in filing an interlocutory appeal.

Ripple Labs was given a deadline until September 1 to file objection letters regarding this interim appeal filing. The court will closely monitor the process, given the possible impact on the crypto asset industry and security law enforcement.