Ripple’s case against the US Securities and Exchange Commission continues to be at the forefront of community discussions as it has recently entered a new phase.
However, it’s important to put forward some clarifications in regard to the most recent developments in the lawsuit. Let’s dive in.
A Bit of Backstory
Last month, the presiding Judge, Analisa Torres, came out with a massive ruling which stated that secondary sales of XRP do not constitute investment contracts.
The market perceived this as a victory for Ripple, and the price of XRP skyrocketed by almost 100% and reached a high of close to $0.90.
However, the cryptocurrency has lost close to 50% of that since then and is currently trading at $0.50 following a crash of more than 15% in the past 24 hours alone.
ADVERTISEMENT
That said, the SEC wasn’t happy with the ruling. Last week, the Commission filed an interlocutory brief, formalizing its intention to appeal the Judge’s ruling. Ripple opposed it yesterday. The company argued that there is no extraordinary circumstance that justifies a departure from the rule that requires all issues to be resolved before an appeal.
Court Greenlights SEC’s Request
Despite Ripple’s opposition, the US District Court for the Southern District of New York has decided to grant the Commission’s request to file a motion for an interlocutory appeal.
This is where some people get it wrong, thinking that XRP’s crash has to do with this decision, assuming an appeal has been honored.
This action merely authorizes the SEC to request an interlocutory appeal – it doesn’t automatically grant it.
The above was clarified by James Filan – a defense lawyer and a former federal prosecutor.
That said, the XRP price is down quite a bit today. The cryptocurrency crashed by over 15%, following the downfall of the entire market.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
