SEC Will Appeal XRP Ruling in Case Against Ripple, Regulator Says

A federal judge ruled that while Ripple’s direct sales of XRP to institutional investors violated securities law, its programmatic sales to retail investors through exchanges did not.

Ripple CEO Brad Garlinghouse (Scott Moore/Shutterstock/CoinDesk)

The U.S. Securities and Exchange Commission (SEC) will file an “interlocutory appeal” of a judge’s ruling on Ripple’s programmatic sales of XRP, the regulator said in a court filing on Wednesday.

The SEC said it was seeking “leave to” appeal part of a recent decision while other parts of the SEC’s case proceed to trial. Although the regulator said approval of an interlocutory appeal could prevent the SEC and government from needing two trials.

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A federal judge ruled last month that while Ripple’s direct sales of XRP to institutional investors violated securities law, its programmatic sales to retail investors through exchanges did not.

Judge Analisa Torres, of the U.S. Southern District Court, had tentatively scheduled a trial on other issues that she did not rule on during the motions for judgement for the second quarter of 2024.

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The SEC had previously hinted that it might appeal the ruling in a separate case, when attorneys for the regulator urged Judge Jed Rakoff of the same court to ignore the ruling as he mulled over Terraform Labs’ motion to dismiss its own SEC lawsuit.

Edited by Aoyon Ashraf.

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