Lawyer Oscar Franklin Tan believes that if the appeal is allowed, whoever wins will build momentum in the main case.
As the United States Securities and Exchange Commission (SEC) seeks an interlocutory appeal in its case against Ripple Labs, lawyers working in the crypto space expressed confidence in Ripple’s case, with some underscoring that the XRP (XRP) token is not a security.
On Aug. 9, the SEC sent a letter to Judge Analisa Torres stating that it was moving to appeal the court decision, which it says warrants a fresh look by an appellate court. The SEC asked the judge to put the case on hold while the appeal is in progress.
The SEC’s move to appeal sparked questions among community members, with some thinking that the SEC’s move to appeal is a move to challenge the “non-security” status of XRP. However, crypto lawyers assured the community that this is not the case.
According to crypto lawyer Jeremy Hogan, the two issues are separate. Hogan explained that if the SEC wins the appeal on the sales, Ripple would not be able to facilitate sales using exchanges. Despite this, the lawyer believes that exchanges could keep XRP listed as long as the sales are not made by Ripple.
Hogan’s thoughts on the Ripple case. Source: X (Twitter)
Cointelegraph reached out to crypto lawyer Oscar Franklin Tan, chief legal officer of the nonfungible token (NFT) platform Enjin, to break down some of the intricacies surrounding the SEC’s move.
According to Tan, appeals usually take place once the case is finished. However, the SEC’s appeal is interlocutory, meaning it wants to appeal even though the case is unfinished.
The SEC does not have the “right” to appeal just yet which is why they are asking permission to file an “interlocutory” appeal. Ripple will file its response with the Court next week. Stay tuned. https://t.co/zCeVZhYfxc
When asked how this appeal could potentially influence the course of the case, Tan told Cointelegraph that it’s all about the momentum. He explained:
While Hogan believes that the appeal will not affect XRP’s security status, Tan believes that this is still what the SEC is after. He thinks the SEC is still looking to overturn the July decision by Torres that XRP is not a security in certain instances.
Tan said that, at the moment, the SEC is using the conclusion in the Terraform Labs case against the judge in the XRP case. The crypto lawyer said that the SEC argues that a higher court should “break the tie” among different conclusions. However, Tan believes the SEC should let the court process proceed normally. He explained:
Meanwhile, Ripple’s chief legal officer Stuart Alderoty told the community to “stay tuned,” noting that Ripple will file its response with the court next week.