Ripple Vs. SEC Update: XRP Lawsuit Heads to Second Circuit Court for Appeals

The XRP community eagerly anticipates Judge Torres’ rulings on various motions, including the final adjustment in the remedies phase of the legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs. 

According to a lawyer, the Ripple or Coinbase case will likely be the first to reach the 2nd Circuit Court of Appeals for clarity on the status of crypto assets, following a settlement between the US SEC and Terra. 

Pro-crypto lawyer James Murphy, also known as “MetaLawMan,” stated in a post on X that the settlement between the US SEC and defendants Terraform Labs and Do Kwon is good news. The SEC is pursuing millions in fines separately from Do Kwon and Terra. 

Murphy also mentioned that the SEC settlement could potentially lead either Ripple or Coinbase, the latter of which has already filed for an interlocutory appeal, to take the lawsuit to the Court of Appeals for the Second Circuit. These key players in the crypto industry aim to seek clarification on the legal status of crypto assets. 

Notably, the US Court of Appeals for the Second Circuit previously ruled in favor of Coinbase in a lawsuit, affirming that secondary market transactions of cryptocurrency are not considered securities. This decision by a federal judge established a significant precedent, preventing the US SEC from appealing regarding XRP secondary market sales in the SEC vs. Ripple case.

However,  Empower Oversight has submitted a fresh FOIA request, intensifying its call for additional records from the SEC. The watchdog is particularly interested in documents related to the classification of various cryptocurrencies, such as Bitcoin and Ethereum, as non-securities by former SEC director William Hinman and former SEC chair Jay Clayton.

This inquiry could hold notable implications for the Ripple vs. SEC legal battle, given the similarities in the arguments presented.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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