The lawsuit between the US Securities and Exchange Commission has been at the forefront of the cryptocurrency industry ever since it started back in 2020.
However, lately, the attention toward it has been exacerbated because of the most recent developments. Recall that in July, the presiding judge – Analisa Torres – ruled that secondary sales of XRP didn’t constitute investment contracts. This was a blow to the SEC as it refuted one of its main arguments.
But did the SEC commit another glaring mistake in the events that followed?
- According to a legal expert, who shared his analysis on X, the Commission made a serious blunder once it decided to file for an interlocutory appeal. He argues that Judge Torres didn’t rule that sales over exchanges CAN’T be investment contracts.
- In a detailed thread, the attorney said that the judge only ruled that the SEC “failed to meet its burden of proof that a reasonable retail investor would believe they were relying on Ripple’s efforts for profits.”
- Furthermore, he says that the Commission failed to produce evidence of the reach and of a “single XRP holder who said he was relying on Ripple to increase the price of XRP.”
- He believes the SEC is now stuck with the record.
“Normally, a party appealing a final ruling has the chance to interpret the ruling in a way that is helpful to it, and the court that issued the ruling doesn’t get a chance to explain or clarify. But now, whether Judge Torres certifies the interlocutory appeal or refuses to, she will have the chance to clarify her ruling. She will make it very clear that her decision was only that the SEC utterly failed to meet its burden of proof.
One important thing non-lawyers might know but not always remember or appreciate is the general rule that no new evidence can be made on appeal, and no new legal arguments can be made on appeal either. The SEC is stuck with the record.” – Greg Beuke said.
- Meanwhile, XRP’s price continues trading in the red, charting a decline of over 17% in the past seven days. Some analysts, however, seem to think that the SEC’s hiccups might pave the way for a recovery in the near future.