In the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) regarding the cryptocurrency XRP, the SEC’s recent move has raised questions among the crypto community. They are now seeking an interlocutory appeal in the XRP Lawsuit.
Marc Fagel Reveals SEC’s Ripple Ruling Strategy for Crypto Exchange Litigations
Former SEC official Marc Fagel has recently emerged to provide insights into the main motive behind the SEC’s pursuit of permission for an interlocutory appeal.
Eventually, this interlocutory appeal came of Binance, a prominent cryptocurrency exchange, who is filing a motion in an attempt to dismiss the SEC’s appeal request. Binance used the Ripple ruling as a significant legal precedent in its argument.
Drawing from his experience in securities litigation, Fagel uncovers the SEC’s pursuit of this appeal as a calculated response to the potential impact of the Ripple ruling. He observes that if the ruling had only applied to issuers of securities-related assets and tokens, the SEC might have chosen a different course.
Nevertheless, considering the broad-reaching impact of the Ripple ruling on ongoing litigations involving crypto exchanges like Coinbase and Binance, the SEC deemed it necessary to pursue this interlocutory appeal.
SEC’s Worries, as Ripple Ruling’s Weight on Ongoing Legal Actions
The SEC has expressed its concerns to the court, emphasizing the potential impact of programmatic sales rulings on their ongoing legal actions. Currently, the court is evaluating the SEC’s request for certification of an interlocutory appeal.
Binance is taking the SEC’s pursuit seriously and has responded by submitting legal documents to support its motion for dismissing the SEC’s case. The legal team representing Binance refers to the Ripple ruling as a precedent that could potentially challenge the SEC’s broader objectives concerning cryptocurrency exchanges.
Attorney Morgan, representing Binance, emphasizes that the SEC foresaw other crypto-related companies like Coinbase potentially using the Ripple ruling as a foundation for their defense strategies. Meanwhile, the SEC’s moves in the XRP lawsuit go beyond the courtroom, with broader implications in mind.