{"id":181122,"date":"2023-09-09T05:39:24","date_gmt":"2023-09-09T05:39:24","guid":{"rendered":"https:\/\/precoinnews.com\/?p=181122"},"modified":"2023-09-09T05:39:24","modified_gmt":"2023-09-09T05:39:24","slug":"sec-urges-court-to-grant-ripple-labs-appeal-citing-knotty-legal-problems","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/sec-urges-court-to-grant-ripple-labs-appeal-citing-knotty-legal-problems\/","title":{"rendered":"SEC urges court to grant Ripple Labs appeal citing \u2018knotty legal problems\u2019"},"content":{"rendered":"<p>The U.S.<strong> <\/strong>Securities and Exchange Commission has submitted a filing urging the court to grant its motion to appeal a ruling from the Ripple Labs lawsuit that deemed that XRP was not a security when sold to retail investors. <\/p>\n<p>The agency argued that there are \u201cknotty legal problems\u201d surrounding the court&#8217;s application of the law \u2014 specifically the Howey Test \u2014 that warrant a review.<\/p>\n<p>As per a Sept. 8 filing, the SEC called for the U.S. District Court for the Southern District of New York to grant its motion for interlocutory appeal, and \u201cstay further proceedings until the resolution of that appeal.\u201d<\/p>\n<blockquote><p>\u201cThe SEC respectfully requests certification for appellate review now because the issues raised by the Court\u2019s order on summary judgment (D.E. 874) (\u2018Order\u2019) present precisely the kinds of \u2018knotty legal problems\u2019 that led Congress to provide for interlocutory review.\u201d<\/p><\/blockquote>\n<p>Judge Analisa Torres ruled in July that XRP is generally not a security under SEC guidelines, particularly when distributed via programmatic sales (e.g. sold to retail via exchanges). <\/p>\n<p>In the latest filing, the SEC argued that the rulings on programmatic sales and other distributions present \u201clegal questions\u201d that are significant enough for the agency\u2019s interlocutory appeal to be approved by the court. <\/p>\n<p>The SEC suggested that this is down to there being a legal gray area as to whether certain crypto assets fall under the classification of investment contracts via the Howey Test or not, as it highlighted court proceedings from other cases. \u00a0 <\/p>\n<p>\u201cAt least two opinions within this District reach contradictory legal conclusions on these issues and many other courts are considering whether similar offers and sales [&#8230;] satisfy Howey,\u201d the SEC stated, adding that: <\/p>\n<blockquote><p>\u201cWhile interlocutory appeal should be the exception, not the rule, this is the unusual case where the Defendants themselves say that the issues have industry-wide significance and are of special consequence, and thus is precisely the type of case as to which the Second Circuit has invited interlocutory appeal.\u201d<\/p><\/blockquote>\n<p>These sentiments however, seemingly contradict previous statements from the agency and its chairman Gary Gensler. <\/p>\n<p>On multiple occasions, Gensler has staunchly shot down the need for new crypto regulation, as he has asserted that the SEC already has clear guidelines that adequately cover the full scope of the crypto market. <\/p>\n<p>Such a view includes the notion that the most of the crypto on the market falls under the definition of a security.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Here\u2019s what happened in crypto today<\/em><\/strong><\/p>\n<p>In a Sept. 8 tweet, Ripple\u2019s chief legal officer Stuart Alderoty called the filing \u201chypocritical\u201d as he noted that: \u201cAfter years of its chairman saying the \u2018rules are clear and must be obeyed\u2019 the SEC now cries that an appeal is urgently needed to resolve these \u2018knotty legal problems\u2019.&#8221;<\/p>\n<p>Coinbase\u2019s chief legal officer Paul Grewal also chimed in by questioning how crypto firms can be on \u201cfair notice\u201d if there are knotty legal questions that need to be considered in court. <\/p>\n<p>The SEC initially moved to appeal and stay the decision from Torres in August, arguing that there was \u201csubstantial ground for differences of opinion.\u201d <\/p>\n<p>On Sept. 1, Ripple Labs fired back by filing a memorandum of law in opposition, arguing that the SEC had unsubstantial grounds to request an appeal. <\/p>\n<p><strong><em>Magazine: <\/em><\/strong><strong><em>Crypto regulation \u2014 Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/p>\n<p>Source: <a href=\"https:\/\/cointelegraph.com\/news\/sec-urges-court-to-grant-ripple-labs-appeal\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission has<\/p>\n","protected":false},"author":3,"featured_media":181121,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC urges court to grant Ripple Labs appeal citing \u2018knotty legal problems\u2019 - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/sec-urges-court-to-grant-ripple-labs-appeal-citing-knotty-legal-problems\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC urges court to grant Ripple Labs appeal citing \u2018knotty legal problems\u2019 - Pre Coin News\" \/>\n<meta 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