SEC appeals Ripple’s challenge to XRP-status appeal

The U.S. Securities and Exchange Commission (SEC) appealed the stay of Ripple Labs’ appeal of the judge’s ruling on the partial denial of XRP as a security.

In July 2023, the Southern District of New York court found that programmatic sales and other distributions of the token did not constitute offers and sales of investment contracts. After this, the SEC filed an appeal.

In its filing, the agency argued that the judge’s order, issued in a summary fashion, raises “precisely those kinds of tangled legal issues” that require interlocutory — or preliminary — review by the federal appellate court. This follows from the law allowing the appeal of certain decisions before the case is concluded, according to the filing.

The SEC argues that the proposed resolution of the dispute would speed up the proceedings.

Earlier, Ripple Labs urged the SEC’s motion for an interlocutory appeal to be dismissed, saying there were no legal grounds to challenge the ruling.

Ripple’s lawyers argue that an appeal would merely delay the proceedings and would not help yield a final decision.

As reported, the SEC and Ripple have been in a court battle since 2020. The commission charged the company with unregistered sales of securities in the form of XRP amounting to $1.3 billion. The defendants in the suit also include CEO Brad Garlinghouse and co-founder Chris Larsen.