Will Judge Torres Deny SEC’s Motion in Ripple Lawsuit? Twitter Debates

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In a recent Twitter post, Ashley Prosper, a prominent figure in the cryptocurrency community, made a bold prediction about the fate of the interlocutory appeal certification motion in the SEC vs. Ripple lawsuit. Meanwhile, during the Apex Dev Summit, Ripple’s Chief Technology Officer (CTO), David Schwartz, asserted that, apart from Bitcoin, XRP now stands as the only digital asset with regulatory clarity in the United States.

These statements set the stage for a contentious legal battle between Ripple and the SEC, raising critical questions about the classification of cryptocurrencies.

The SEC’s Case Against Ripple

Since December 2020, the SEC has been pursuing Ripple Labs, claiming that XRP transactions spanning eight years constitute investment contracts, thereby classifying them as securities. In response, Ripple has vigorously defended itself, contesting the SEC’s latest request for an interlocutory appeal and remaining steadfast in its belief that the court will validate its arguments.

Also Read: LBRY Fights Back, Files Appeal Against SEC! Ripple-like Situation to Repeat?

What’s the SEC’s Play Here?

The SEC’s pursuit of an interlocutory appeal underscores the far-reaching implications of the Ripple case, extending beyond the company itself to the broader digital asset market. The SEC argues that this ongoing legal battle poses a “controlling question of law,” justifying the need for an appeal. In contrast, Ripple challenges the SEC’s request for a procedural pause, accusing it of failing to provide adequate justification for such a move.

Ripple argues that the Howey Test—the standard framework for evaluating whether an asset qualifies as an investment contract—has been employed arbitrarily by the SEC. Ripple is claiming that the SEC is tweaking its “litigation positions” based on desired outcomes, rather than a steadfast commitment to the rule of law.

So, What’s Next?

According to Prosper’s prediction, the SEC has a 10-day window to file an appeal, but she expects the motion to be denied. She even hinted at a possible out-of-court settlement—a wild card that could have the digital asset community buzzing.

With social media influencers like Prosper and key Ripple executives like Schwartz offering contrasting views,  the situation has become a focal point for discussions about what qualifies as a security.  The Ripple vs SEC showdown could be a watershed moment for crypto regulation.