Former US SEC official Marc Fagel recently commented on the agency’s ongoing Ripple He discussed the main reason behind seeking permission to file an interim appeal in his case. This statement comes after Binance requested that the SEC reject its appeal, citing the Ripple decision as a very important legal precedent.
With his extensive knowledge of securities litigation, Fagel confirmed that the SEC’s appeal was a strategic move to counter the effects of the Ripple decision on the broader enforcement program. He noted that the SEC could have gotten around the decision if it had only concerned issuers of securities-related assets and tokens.
However, the decision was made by Coinbase and Binance Its potential impact on ongoing lawsuits against crypto exchanges such as has necessitated an appeal.
The SEC shares these concerns and continues to argue that the court’s decision regarding programmatic sales could significantly impact its ongoing litigation. However, the court has not yet ruled on the SEC’s request to file a provisional appeal.
As Koinfinans.com reported, John Deaton predicted that the court may reject the SEC’s request to certify the provisional appeal in the Ripple case. If the court rejects the request, the regulator must wait until the end of next year to challenge the decision through a full appeal, according to Deaton.
Exchange lawyers highlighted the Ripple decision to argue for dismissing the SEC’s complaint. They argued that the U.S. District Court for the Southern District of New York, which heard the Ripple case, concluded that Ripple’s scheduled XRP sales were blind bid transactions and therefore did not qualify as investment contracts.
Binance’s argument quickly cited the Ripple decision to support its case. The exchange’s stance is that the decision sets a precedent that could undermine the SEC’s broader agenda against crypto exchanges. Attorney Morgan emphasized that the SEC expects other crypto-related companies such as Binance and Coinbase to benefit from the Ripple decision in their defense strategies.